The head of Finchglow Holdings, Bankole Bernard, on Thursday urged the Nigerian government to cut taxes and levies on air tickets, saying the charges contribute significantly to rising domestic airfares.
Bernard, whose company oversees six travel and aviation businesses, told reporters in Lagos that ticket prices typically rise during the end-of-year period due to a spike in demand and limited airline capacity. He said the imbalance between supply and demand, combined with multiple government-imposed charges, has put upward pressure on fares.
“In the airline business, you make your profit either through yield or boarding,” he said. “But when you examine a N1,000 ticket, only N550 goes to the airline. The remaining N450 is shared by agencies such as the NCAA, FAAN and the NSIB.”
Bernard said lowering statutory charges would ease the cost burden on airlines and help stabilise prices. “If the government reduces the cost of the services they provide to airlines, ticket prices will drop,” he said.
He appealed to authorities to review the taxes and levies imposed on passengers, arguing that policy adjustments could help moderate airfare increases during peak travel periods.
