Air Peace COO explains high operating costs of one-hour flights in Nigeria, citing fuel, leasing, and insurance challenges.

[dropcap]A[/dropcap]ir Peace Ltd., one of Nigeria’s leading airlines, has shed light on the high costs of domestic air travel, revealing that a one-hour flight within Nigeria costs no less than ₦14 million to operate.

Chief Operating Officer Mrs Oluwatoyin Olajide shared these insights during a press conference in Lagos on Friday, breaking down the major factors driving operating costs.

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She explained that jet A1 fuel alone accounts for over half of the expenditure, with a litre costing ₦1,400. For a one-hour flight, an average of 4,000 litres is required, amounting to ₦7 million.

Beyond fuel, other costs include Aircraft, Crew, Maintenance, and Insurance (ACMI), which adds an additional $4,000 (approximately ₦5 million).

Together, these factors make air travel in Nigeria significantly more expensive than in other parts of the world.

“Operating a one-hour flight from Lagos to Abuja, Port Harcourt, or Owerri requires ₦14 million. This cost is double what is typical globally,” Olajide said.

The COO also highlighted other burdens faced by Nigerian airlines, including the cost of borrowing, which is approximately 30% compared to the 3% faced by foreign operators.

Additionally, spare parts cost four times more for Nigerian airlines, further complicating operations.

“Insurance for one-hour flights costs another ₦5 million,” she added, underscoring how Nigerian airlines operate under financial pressures that are not common elsewhere.

Addressing recent reports of alleged fare exploitation, Olajide clarified that Air Peace was invited by the Federal Consumer and Customer Protection Commission (FCCPC) for an enquiry, not an investigation.

This enquiry, she said, could have been more appropriately directed to the Nigeria Civil Aviation Authority (NCAA), the industry regulator.

Olajide also pointed out Air Peace’s history of goodwill, citing its efforts during the COVID-19 pandemic and xenophobia crises when the airline conducted evacuations of Nigerians abroad at no cost.

Despite these operational challenges, Air Peace remains committed to serving Nigerian travellers, although the current airfares struggle to reflect the true cost of operations.