The rising ticket cost in Nigeria is driven by economic pressures, market forces and statutory charges rather than airline profiteering, Group Managing Director Finchglow Group, Bankole Bernard, has said. Speaking on airfare pricing, Bernard explained that the cost of tickets reflects structural realities within the aviation ecosystem, including demand levels, operating expenses and government-imposed levies affecting airlines and passengers alike.
According to Bernard, ticket cost must be viewed strictly as a commercial outcome shaped by demand and supply. “When demand outweighs supply, the cost will go up. That is the reality of any commercial product,” Bernard said, stressing that ticket cost responds directly to seat availability and passenger volumes.
However, Bernard acknowledged that passengers feel the impact more sharply during periods of economic strain. “There is nothing you and I can do about the economy. There is nothing you and I can do,” he said, adding that macroeconomic pressures, foreign exchange constraints and rising operational costs inevitably reflect in ticket cost across domestic routes.
Ticket Cost, Capacity and Market Balance
Meanwhile, Bernard explained that ticket cost can moderate when government policies encourage route expansion and higher flight frequencies. He stated that increased capacity reduces pressure on pricing and supports volume-driven business models. “When we have more frequent routes, the pressure reduces one way or the other,” he said, noting that volume and yield determine how airlines and agents remain viable.
Breaking down the structure of ticket cost, Bernard revealed that airlines retain only a portion of the fare paid by passengers. Using a simplified example, he said, “If a ticket is one thousand naira, about forty-five per cent goes to taxes and charges. The airline does not take the full amount.” He explained that taxes, charges and levies significantly dilute airline revenue.
In addition, Bernard emphasised that airlines merely collect these statutory deductions on behalf of government agencies. “They are not going to absorb the cost. They will pass it on in the goods they are selling,” he said, explaining that ticket cost rises largely because multiple levies are embedded within the final fare structure.
Bernard also linked ticket cost pressures to Nigeria’s airport framework, noting that the country operates twenty-two federal airports. He explained that many of these facilities generate limited revenue, forcing government to subsidise overheads. These operational costs eventually feed into aviation charges and influence ticket cost nationwide.
While supporting airport development as a capital investment, Bernard argued that airports should operate as commercial ventures. “Government is not in the business of running business. They are regulators,” he said, advocating concessioning and professional management to improve efficiency, reduce waste and stabilise ticket cost in the long term.
Despite public concern about ticket cost, Bernard disclosed that Finchglow Group recorded growth in bookings over the past year. “People are flying,” he said, noting that safety concerns on highways continue to push travellers towards air transport. This sustained demand, he added, reflects resilient passenger behaviour despite economic pressures.
He further observed that infrastructure development has not matched passenger growth, calling for improvements in basic amenities. “One of the key things is free Wi-Fi. Everywhere around the world, you see it, and I don’t know why it is so difficult,” Bernard said, stressing that modern infrastructure is essential to improving passenger experience and managing ticket cost expectations.
Bernard concluded that reducing ticket cost sustainably will require coordinated reforms. These include lowering taxes and levies, improving airport infrastructure, expanding capacity and redefining government’s role strictly as regulator, in line with global aviation standards set by bodies such as the International Air Transport Association.
