Nigeria’s domestic airlines are grappling with a severe decline in passenger traffic, a situation that has significantly impacted their earnings and raised concerns within the industry. The ongoing economic crisis in the country has been identified as a major factor contributing to this downturn.
Data from the Nigerian Civil Aviation Authority (NCAA) indicates that from January to July 2022, 9,473,813 people traveled domestically by air. However, in the same period in 2023, only 8,176,722 passengers were recorded, reflecting a 13% drop. Additionally, figures from the Federal Airports Authority of Nigeria (FAAN) reveal a sharp decline in both revenue and non-revenue travels at the Murtala Muhammed International Airport (MMIA) in Lagos. From January to December 2022, MMIA recorded 1,021,429 travels, but in 2023, this number fell to 781,894, marking a 23% decrease. Further analysis shows that only 332,817 people traveled through MMIA between January and May 2024.
Industry experts attribute this decline to several factors, including rising airfares, declining living standards, and a lack of disposable income. Aero Contractors Managing Director, Capt Ado Sanusi, emphasized the impact of Nigeria’s economic conditions on citizens’ willingness to travel by air. He pointed out that the diminishing middle class and high ticket prices are making air travel increasingly unaffordable for many Nigerians.
Sanusi also cited security concerns and the fluctuating naira-to-dollar exchange rate as additional reasons for the drop in passenger traffic. The high cost of fuel and other operational expenses, driven by the unstable naira, has led to higher ticket prices, further discouraging air travel. He noted that tourism has also been negatively affected, with fewer people traveling for leisure due to safety concerns and economic challenges.
Olumide Ohunayo, Secretary General of the Aviation Safety Roundtable Initiative (ASRTI), echoed these sentiments, highlighting that many people now avoid air travel due to insecurity and economic hardship. He also criticized the lack of collaboration among Nigerian airlines, which has exacerbated issues such as flight cancellations and delays.
Dr. Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria, described the situation as a no-win scenario for both airlines and passengers. He pointed out that the reduced capacity in the industry, coupled with rising costs and decreasing revenues, has created a challenging environment for operators.
To navigate these turbulent times, industry stakeholders are advocating for strategic adjustments by airlines, including cost-cutting measures and the exploration of new business models. There are also calls for legislative reforms to license smaller airline operators with lower operating costs, which could help revitalize the industry by making air travel more accessible and increasing the use of underutilized airports.
