Air Peace, Max Air, Other Local Airlines in Trouble as Domestic Traffic Drops
- Nigeria's domestic air travel sees 13.6% decline, reaching three-year low of 12.54 million passengers
- International passenger traffic rises steadily, increasing 15.5% from 2022 to 2024 amid local challenges
- Experts warn high costs and poor service threaten domestic airlines' recovery as road travel gains popularity
Nigeria’s aviation sector is showing clear signs of imbalance, with domestic air travel sliding to its weakest level in three years while international passenger traffic continues to climb.
New data released by the Federal Airports Authority of Nigeria (FAAN) highlights mounting pressure on local airlines such as Air Peace, Max Air and other domestic operators that rely heavily on intra-country routes.
Source: Getty Images
According to FAAN, passenger movements on domestic routes have steadily declined, reflecting rising costs, operational challenges and changing travel choices among Nigerians.
The trend underscores growing uncertainty for local airlines already grappling with high overheads and weak consumer confidence, according to a Punch report.
Domestic traffic hits three-year low
FAAN figures show that domestic passenger traffic fell to 12.54 million in 2024, down sharply from 14.52 million recorded in 2022.
This represents a contraction of about 13.6 per cent over three years, translating to nearly two million lost passengers in what was once the backbone of Nigeria’s aviation industry.
The decline has been gradual but persistent. Between 2022 and 2023, passenger numbers dropped by 7.6 per cent to 13.41 million.
The downward slide continued in 2024, with a further 6.4 per cent year-on-year reduction. Industry watchers say rising airfares, multiple taxes and frequent flight disruptions have made domestic flying less attractive to the average traveller.
Costs, taxes and frustrated passengers
Throughout 2024 and 2025, domestic airlines repeatedly complained about multiple taxation and charges across airports, which they say have pushed operating costs to unsustainable levels.
These costs are often passed on to passengers through higher ticket prices, making air travel less competitive compared to road transport.
Aviation stakeholders warn that unless cost pressures ease and service quality improves, more Nigerians will continue to opt for road travel, despite security and safety concerns associated with long-distance journeys.
International travel tells a different story
While domestic routes struggle, international air travel is enjoying steady growth.
FAAN data shows that international passenger traffic rose from 3.75 million in 2022 to 4.07 million in 2023, an increase of 8.4 per cent.
The upward momentum continued in 2024, with passenger numbers climbing to 4.33 million, representing another 6.4 per cent growth.
Between 2022 and 2024, international traffic expanded by 15.5 per cent, adding over 580,000 passengers.
Analysts link this growth to sustained demand from high-income travellers, increased migration, expanding cross-border trade and Nigeria’s deeper integration into global travel networks.
Limited local capacity has also allowed foreign airlines to benefit more from international demand.
Service quality and value for money in focus
A retired pilot, Mohammed Badamosi, said the domestic decline could persist if airlines fail to improve passenger treatment and reliability.
He noted that high fares, frequent delays and cancellations discourage travellers who often find road transport more predictable.
Badamosi argued that in more developed markets, travel is packaged to be attractive, combining flights, road transport and accommodation to deliver better value.
He stressed that Nigerian airlines must respect passengers, keep to schedules and deliver consistent service if domestic aviation is to recover.
As international travel thrives, the shrinking domestic market remains a warning signal, one that could reshape Nigeria’s aviation landscape if left unaddressed.
Operators warn of fare hikes
A prior report by Legit.ng disclosed that a number of local airlines hiked their fares during the yuletide, leading to the fall in passenger traffic.
Experts blame the increased fares for the abandonment local airlines.
Source: UGC
Recently, Allen Onyema, the Chairman of Air Peace, disclosed that domestic airfares may hit N1 million if the Nigerian government goes ahead to implement the new tax laws.
FG denies Air Peace CEO’s claim over new taxes
Legit.ng earlier reported that the Presidential Fiscal Policy and Tax Reforms Committee said Nigeria’s new tax laws were designed to support airlines, not harm them, as concerns continue over rising operating costs in the aviation sector.
In a statement released by the committee, it acknowledged the financial pressures facing domestic airlines, particularly the impact of multiple taxes, levies and regulatory charges.
Air Peace CEO Allen Onyema predicted an uptrend in airfares as new tax provisions threatened to push local flight fares beyond N1 million and forced airlines to suspend operations.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
