Nigeria's Airline Operations Among World's Costliest: IATA

The International Air Transport Association (IATA) has reported that Nigeria ranks among the world's costliest markets for airline operations. Kamil Al Awadhi, IATA's Regional Vice President for Africa and the Middle East, made this disclosure during the association's annual general meeting in Brazil.

He acknowledged ongoing efforts by Nigeria's Minister of Aviation and Aerospace Development, Festus Keyamo, to reform sector policies and engage stakeholders. However, Al Awadhi stressed that airlines in Nigeria continue to struggle with high operational costs, which undermine their long-term sustainability and competitiveness.

Factors contributing to these costs include fluctuating fuel prices, foreign exchange constraints, infrastructure challenges, and rising maintenance costs. Additionally, various taxes and regulatory charges significantly impact operational expenses.

IATA's outlook for African airlines indicates a projected net profit of $100 million in 2026, a significant decline from the $300 million profit expected in 2025. The report also highlights that the operational cost structure challenges are expected to erode profits across the region.