Skyrocketing Fares: Air Peace Explains Why One-Hour Flights Must Cost N700k!

Skyrocketing Fares: Air Peace Explains Why One-Hour Flights Must Cost N700k!

Air Peace, one of Nigeria’s premier airlines, has justified its flight ticket pricing structure, explaining that a one-hour flight should ideally cost between N500,000 and N700,000 due to the soaring operational costs in the aviation industry. Mrs. Oluwatoyin Olajide, the airline’s…READ MORE…

Chief Operating Officer (COO), refuted accusations of fare exploitation by the Federal Competition and Consumer Protection Commission (FCCPC), clarifying that no formal investigation had been launched despite media reports suggesting otherwise.

Olajide outlined the significant cost drivers, including the high price of Jet A1 fuel, which makes up 60-65% of operational expenses. She revealed that a one-hour flight consumes 4,000 litres of fuel, amounting to N7 million. Additionally, she highlighted the astronomical insurance premiums, which are three times higher than global averages.

She also criticized the disparity in interest rates for local airlines, with Nigerian carriers facing loan rates as high as 30% compared to 3% abroad. Despite these challenges, Air Peace offers fares between N95,000 and N120,000 for domestic flights to cities like Abuja, which Olajide called a substantial sacrifice to make air travel more accessible to Nigerians.

Furthermore, Olajide stressed that while global flight operations are expensive, Air Peace’s commitment remains to maintain affordable pricing while ensuring the airline’s sustainability in Nigeria’s competitive aviation landscape.