Lagos, Abuja airports rank world’s most expensive due to multiple charges, says IATA
The International Air Transportation Association (IATA) has ranked Nigeria’s Lagos and Abuja airports as the world’s most expensive airports to operate in due to multiple levies and taxes.
IATA’s Vice President for Africa and Middle East, Mr. Kamil Al Alwadi disclosed this during a presentation at the ongoing three-day Aviation Summit in Abuja.
In his presentation, Alwadi said Nigerian airports charge foreign airlines about 27 levies, which makes it the most expensive in the world, a situation that discourages many foreign airlines from flying into the country.
He lamented the stunted growth of aviation in the region, especially in Nigeria, calling on the Nigerian government to create a conducive environment for airlines to operate and thrive.
“In recent research conducted it was discovered that the most expensive airport in Africa is Abuja airport, followed by Lagos airport. With all these exorbitant charges, Nigerian airlines can’t compete with their foreign counterparts.
“Africa has put itself in a place where it cannot help its own, expensive fuel, excessive charges, leasing and insurance through the roof, the airlines need to be financially viable too. The airlines contribute to the country’s GDP, but Nigeria needs to decide what to do for them to survive”, he said.
According to him, airlines in Africa are expected to generate a moderate combined loss of around $484 million in 2023 because the continent remains a difficult market in which to operate an airline, with economic, infrastructure, and connectivity challenges impacting the industry’s performance.
“However, despite the challenges, the industry continues to move towards profitability following the COVID disruption and could be in the black as soon as next year.
“Underpinning this is the robust demand for air travel. As we saw in the second quarter of 2023 – and for two consecutive quarters – African carriers had one of the world’s highest annual passenger traffic growth rates, second only to Asia Pacific.
“With total traffic up 38.9 per cent compared to the same quarter in 2022, African carriers’ growth outperformed the industry-wide average for total and international traffic, even though the region has not fully recovered to pre-pandemic levels. Q2 2023 RPKs were 9.2 percent below the same quarter in 2019.
“Despite this continued positive performance, the region still confronts economic challenges that severely limit the affordability of air travel, in addition to a range of infrastructure issues that curb capacity and hinder the development of consistent air service.
Looking further ahead, over the next 20 years, he said Africa’s passenger traffic will double, eclipsing 300 million passengers by 2040 at an annual average rate of 3.4 per cent.
“As you can see, the continent stands out as the region with the greatest potential and opportunity for aviation. But this potential is limited by safety incidents, infrastructure constraints, blocked funds, high costs, lack of connectivity, regulatory impediments, slow adoption of global standards, and skills shortages, among other factors.” He added.
