Nigeria’s aviation industry is facing growing financial pressure as airlines contend with more than 54 taxes, fees and regulatory charges imposed by government agencies, industry leaders have warned.

Allen Onyema, chairman of Air Peace, said the heavy burden of levies was increasing airfares, reducing airline margins and putting the long-term viability of domestic carriers at risk. He made the remarks in a keynote address at the 30th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos on Thursday.

Onyema called for the urgent consolidation and reduction of aviation taxes and charges, arguing that a more sustainable cost structure is essential for the development of Nigeria’s airline industry.

He said aviation contributes about $2.5 billion annually to Nigeria’s Gross Domestic Product (GDP) and supports more than 217,000 jobs. Rather than treating the sector primarily as a source of government revenue, he urged policymakers to recognise its broader role in driving economic activity.

According to Onyema, aviation generates significant indirect economic benefits through tourism, hospitality, cargo, trade, employment and national connectivity. The financial health of airlines, he said, therefore has implications far beyond the carriers themselves.

While acknowledging that taxes and regulatory charges are needed to fund infrastructure, safety systems and regulatory institutions, Onyema warned that excessive and overlapping levies could have the opposite effect by weakening the airlines that underpin the wider aviation ecosystem.

He said airlines should not be viewed as a direct source of government revenue, but as an industry capable of generating wider economic activity that ultimately expands government revenues through tourism, trade and economic integration.

Airlines face dozens of government charges

Onyema said Nigerian airlines currently deal with about 54 different taxes, fees and charges imposed by major government institutions, including the Nigeria Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA) and Nigeria Revenue Service (NRS).

FAAN alone, he said, collects about 18 separate payments from airlines. These cover services and facilities including electricity, counters, boarding bridges, office space, parking, landing, cargo and terminal operations.

NAMA collects five major charges, including en-route, terminal navigation, overflight, clearance and extension fees. Airlines are also required to pay corporate income tax to the NRS.

For the NCAA, the charges listed by Onyema include the five per cent Ticket Sales Charge (TSC), five per cent Cargo Sales Charge (CSC), five per cent Excess Baggage Charge (EBC), licensing and medical certification fees, aircraft certification charges, Air Operator Certificate (AOC) fees and maintenance organisation charges, alongside other regulatory payments.

Only about six of these charges, he said, are directly included in every domestic air ticket. They comprise the Passenger Service Charge (PSC), Common User Terminal Equipment (CUTE) charge, Passenger Terminal Facility Charge, five per cent TSC, five per cent EBC and the $20 NCAA security levy.

He also pointed to the $11.50 Advanced Passenger Information System (APIS) levy introduced by the NCAA in December 2025 as an additional cost affecting passengers.

The combined impact of these charges can add about N25,000 to domestic fares, depending on the route and airline, Onyema said. On international journeys, taxes and statutory charges can total between $150 and $180.

Rising costs put airline survival at risk

Onyema linked the financial pressure to the high failure rate among Nigerian airlines, saying more than 60 carriers have ceased operations or become defunct over the years.

He said African airlines already face higher operating costs than carriers in many other regions, with taxes, aviation fuel, insurance and aircraft leasing expenses placing further pressure on their margins.

At the conference, United Nigeria Airlines executive chairman and Airline Operators of Nigeria (AON) spokesperson Prof. Okonkwo rejected claims that domestic airlines had failed to remit the five per cent Ticket Sales Charge to the NCAA.

Okonkwo said airlines had remained compliant with their financial obligations before the recent labour disputes. He said there had been no payment difficulties before February this year and that problems emerged after the cost of aviation fuel rose to N3,300 amid the US-Iran crisis.

According to Okonkwo, the AON was the first industry body to raise concerns about the financial impact of regulatory charges during the downturn. The association wrote to the President seeking either a suspension of the charges or temporary relief, a request he said was granted through a 30 per cent waiver.

Following the waiver, airlines met with the NCAA and the Ministry of Aviation to establish a repayment arrangement for outstanding obligations. Under the agreement, airlines were required to pay 10 per cent of their legacy debts within a specified period and settle the remaining balance through instalments.

Okonkwo said airlines complied with the arrangement and held meetings with the NCAA’s director of finance in Lagos and Abuja to establish individual payment plans.

He said United Nigeria Airlines went further by establishing joint accounts with the NCAA at Nigerian banks, allowing the regulator to withdraw funds directly in order to ensure payments were made without delays.

Airlines question value received for charges

Okonkwo also challenged claims that airlines were failing to meet their financial obligations, saying discussions about unpaid charges often overlooked the substantial sums already paid by operators.

He questioned whether airlines were receiving sufficient value from the money collected by regulators and other government agencies.

He cited aircraft inspections as an example, saying airlines are required to pay in advance when NCAA officials travel to locations such as London or the United States to conduct inspections.

Okonkwo argued that the five per cent charge was particularly burdensome because airlines must already meet numerous other tax obligations while financing expensive operations.

He called for continued efforts to eliminate the five per cent charge, saying the cost was too high for businesses operating under significant financial pressure.

The United Nigeria Airlines chairman acknowledged that unions have a legitimate interest in protecting aviation workers but argued that airlines remain among Nigeria’s better-paying sectors.

He also criticised what he described as an inappropriate display by labour unions at an airport, saying the incident could have seriously damaged the industry's reputation had it not been followed by widespread criticism.

Okonkwo praised the Aviation Roundtable president and aviation journalists for speaking out and reporting on the incident, while expressing disappointment that some other stakeholders had not publicly condemned the episode.

Source: Nigerian Tribune

Korean Air has finalized an order for 103 Boeing aircraft valued at $36.2 billion at list prices, completing a deal first announced in 2025, the airline and US aircraft manufacturer said Wednesday.

The order comprises 20 Boeing 777-9 passenger aircraft, 25 787-10s, 50 737-10s and eight 777-8 Freighters. The deal covers both wide-body and single-aisle aircraft, including freighters.

Only the 787 is currently certified for commercial operations among the aircraft types included in the order, while Boeing is continuing development of the 777-8 Freighter.

Aviation advisory and intelligence firm IBA estimates the aircraft order has a current market value of around $12.6 billion after accounting for discounts.

Korean Air said the overall package is worth $44.8 billion when additional agreements are included. These comprise an $8.6 billion purchase of 21 spare engines from GE Aerospace and CFM International, along with a 15-year engine maintenance agreement covering 28 aircraft.

The airline said the investment will support long-term fleet expansion following its integration with Asiana Airlines. The introduction of newer aircraft is also expected to improve fuel efficiency as Korean Air modernises its fleet.

The aircraft purchase represents the largest order in Korean Air’s history. The plan was first announced during South Korean President Lee Jae-myung’s visit to Washington last year.

Korean Air CEO Cho Won-tae has previously said the new aircraft would allow the airline to expand its network to more destinations in the United States and Latin America. Around 80% of the aircraft are expected to replace existing planes in the carrier’s fleet.

Cho described the completion of the agreements as a significant milestone and said the investment reflected the close relationship between South Korea and the United States. Boeing said the agreement resulted from bilateral trade discussions.

Source: Reuters

British Airways will resume services to Tanzania in May 2027, launching seasonal flights to Kilimanjaro and Zanzibar as the airline expands its international summer network.

The return comes 13 years after British Airways ended its Dar es Salaam-London service and will restore a direct connection between the UK and Tanzania, targeting demand for safari and beach holidays.

The new routes are part of the airline’s expanded summer 2027 schedule, which also includes additional services to destinations across Africa, Latin America and the Caribbean.

British Airways will operate three weekly flights from London Gatwick, with each service scheduled to arrive first at Kilimanjaro International Airport before continuing to Zanzibar. Flights are due to begin on May 29, 2027, and operate until October 31, covering the UK school holiday period and Tanzania’s peak safari season.

The expansion comes as airlines and tour operators continue to adjust international networks following disruptions linked to the six-month-old US-Iran war and instability affecting travel through the Middle East. The extent to which those developments directly influenced British Airways’ decision to return to Tanzania, however, remains a matter of market interpretation.

Sean Mendis, a Blantyre-based air transport consultant, said package holiday operators were looking for alternative destinations for travellers who might previously have chosen Middle Eastern resorts.

British Airways’ choice of Kilimanjaro and Zanzibar gives it access to two distinct tourism markets, combining safari, mountain and wildlife experiences with Indian Ocean beach holidays.

Kilimanjaro International Airport provides access to Tanzania’s Northern Safari Circuit, home to attractions including the Serengeti, Ngorongoro Crater, Tarangire National Park and Lake Manyara National Park.

The Serengeti is known internationally for the annual Great Migration, while the Ngorongoro Crater is one of Africa’s major wildlife destinations. Mount Kilimanjaro, the continent’s highest mountain, also attracts climbers and adventure travellers.

Zanzibar offers a contrasting tourism experience, with its beaches, marine activities, cultural attractions and historic sites.

Neil Chernoff, British Airways’ Chief Planning and Strategy Officer, said the airline was pleased to introduce services to the two Tanzanian destinations, describing them as offering complementary tourism experiences.

He said the expanded network would give customers greater choice and flexibility while strengthening London’s links with international destinations.

The new services also reflect British Airways’ use of seasonal scheduling, allowing the airline to align capacity with periods of stronger tourism demand rather than initially operating the routes year-round.

Source: The East African

flydubai has partnered with Egnatia Aviation and Skyborne Airline Academy to expand its pilot training capabilities and strengthen its Ab Initio Pilot Training Programme.

Under the agreement, both training providers will deliver flight instruction for the programme’s first batches of cadets. The initiative will provide trainees with a structured pathway to obtain a Multi-Crew Pilot Licence (MPL) before joining flydubai’s flight operations as first officers.

flydubai Chief Executive Officer Ghaith Al Ghaith said the partnership would support the airline’s investment in developing the next generation of aviation professionals and building the pilot capacity required for its long-term growth.

He said working with Egnatia and Skyborne would strengthen the Ab Initio programme and help prepare cadets for a smooth transition into flight operations.

The partnership forms part of flydubai’s long-term strategy to establish a sustainable pipeline of qualified pilots as the airline expands its fleet and network over the coming decade.

By combining flydubai’s training facilities with the expertise of the two flight training organisations, the programme is also intended to support Dubai’s position as an international centre for aviation training and talent development.

Captain Ahmad Bin Huzaim, Senior Vice President of Flight Operations & Crew Training at flydubai, said the programme aims to attract international aviation talent while further developing Dubai’s role as a global training hub.

He said the partnership will give trainees access to experienced instructors and training facilities in Europe and the United States, supporting a training programme aligned with the standards applied across flydubai’s flight operations.

Egnatia Aviation Chief Executive Officer George Zografakis said the partnership would allow the company to contribute to the development of a new generation of pilots while supporting flydubai’s growth.

Egnatia provides pilot training ranging from Private Pilot Licences to advanced professional qualifications. Its programmes are approved by the UAE General Civil Aviation Authority (GCAA) and the European Union Aviation Safety Agency (EASA), and are designed to meet international aviation standards.

Skyborne Chief Executive Officer Lee Woodward said the academy would bring its training expertise to an international group of flydubai cadets through the new programme. Trainees from Australia, North America, New Zealand and South Africa will be able to participate.

Skyborne is certified by the UAE GCAA and provides commercial pilot training focused on technical knowledge, discipline and the skills required to operate in an international airline environment.

flydubai’s 38,000-square-foot Flight Training Centre remains central to the airline’s pilot development strategy. The facility features four Boeing 737 Full-Flight Simulators, allowing cadets to use advanced simulation technology from the early stages of training and progress toward line training on flydubai’s operational fleet.

Source: ZAWYA

Saudi Arabia’s General Authority of Civil Aviation (GACA) has granted an Air Operator Certificate (AOC) to an Air Arabia-led consortium, clearing the way for the launch of a new low-cost national airline based in Dammam.

The carrier will operate from King Fahd International Airport and plans to serve 24 domestic and 57 international destinations. It is expected to handle around 10 million passengers annually by 2030.

The airline is also projected to create more than 2,400 direct jobs while contributing to the Saudi economy and supporting tourism and air connectivity in the Eastern Province. The plans form part of the Kingdom’s wider aviation programme.

GACA said the AOC was issued after the airline completed the required regulatory and operational procedures under the executive regulations of the Civil Aviation Law. The process included requirements covering safety, security and operational quality.

The consortium, comprising Air Arabia Group, Nesma Group and Kun Holding Company, was selected by GACA in July 2025 following a competition to establish and operate a new national low-cost airline. The winning proposal included majority Saudi ownership.

Captain Sulaiman bin Saleh Almuhaimedi, GACA’s executive vice president of aviation safety and environmental sustainability, said the certificate followed the successful completion of the required technical and regulatory procedures.

He said the new airline would support Saudi Arabia’s ambitions to develop its position as a global logistics and international aviation hub.

Almuhaimedi added that Air Arabia’s operations from Dammam would increase competition in the air transport market, while supporting trade and tourism in the Eastern Province and creating additional employment opportunities.

Saj Ahmad, chief analyst at London-based StrategicAero Research, said the new airline would enter a market that already includes Saudia, Riyadh Air, flynas and flyadeal on domestic and regional routes.

He said the additional carrier could benefit passengers if increased competition leads to lower fares, while noting that the airline would likely compete directly for customers with existing carriers.

Source: Khaleej Times

American Airlines, United Airlines and Southwest Airlines are reducing planned flight capacity as a sharp rise in fuel prices puts pressure on airline profitability, executives said Wednesday.

The US airline industry has responded to higher fuel costs since the Iran war began by tightening capacity, relying on resilient passenger demand and raising fares. Executives from all three carriers said demand has remained strong despite higher ticket prices, helping offset some of the increase in jet fuel costs.

However, the latest fuel price surge is prompting the airlines to reassess less-profitable routes for late 2026 and potentially into 2027.

American Airlines said the latest increase in fuel prices alone is expected to add about $1 billion to its fourth-quarter costs. United Airlines said some flights scheduled for December will no longer operate, with additional adjustments possible during the first quarter and into 2027.

Southwest has already reduced its planned 2026 capacity growth by roughly half because of higher fuel prices and could make further cuts if elevated fuel costs persist.

The changes highlight how rising fuel expenses are reshaping airline capacity despite continued demand. Carriers are seeking to protect fares on routes where demand remains strong while removing flights that become less economically viable as operating costs increase.

Shares of all three airlines have declined over the past month amid the rise in fuel prices. American and United are down about 14% and 15%, respectively, while Southwest has fallen roughly 11%.

American expects revenue gains to hold

American Airlines Chief Executive Robert Isom told a Morgan Stanley conference that he remained confident in the company's revenue outlook. The carrier expects third-quarter revenue to increase between 16% and 19% from a year earlier, with Isom saying most of the recent revenue gains should prove sustainable.

Revenue growth has been broad-based across domestic and international markets and both premium and economy cabins, he said.

American Chief Financial Officer Devon May said at the same conference that fourth-quarter fuel prices had risen by roughly $1 per gallon from the level assumed in July.

Each one-cent change in fuel prices affects American's quarterly costs by approximately $10 million, resulting in an estimated $1 billion increase in fourth-quarter fuel expenses at current levels.

May said American would continue adjusting capacity during the latter part of the fourth quarter in response to higher fuel costs.

United reassesses less-profitable routes

United Airlines is taking a similar approach. Chief Financial Officer Michael Leskinen said the airline had decided to cancel some flights planned for December after higher fuel costs made certain marginal routes less attractive.

Further capacity changes could be introduced in the first quarter and into 2027 if fuel prices remain elevated.

Leskinen said United's strategy was focused on profitability and free cash generation rather than maximising market share.

The capacity reductions are taking place without clear evidence of a broad decline in travel demand. Leskinen described United's fourth-quarter bookings as very strong and said there was limited evidence of demand being affected by higher fares.

Premium travel remains strong, corporate demand is improving and economy-class demand is also holding up, he said. United continues to expect that higher fuel expenses can eventually be recovered through pricing, although the recovery may take time.

Southwest could make further cuts

Southwest Airlines Chief Financial Officer Tom Doxey said autumn revenue was performing ahead of expectations, helping offset increased fuel costs and allowing the carrier to maintain its third-quarter earnings guidance.

The airline had initially planned to increase capacity by around 2% to 3% year over year in 2026.

Doxey said that if fuel prices remained higher for an extended period, reducing capacity would be the natural response.

Source: Reuters