Air Peace CEO Claims Nigerians Pay World's Cheapest Fares Amid Hikes

When Allen Onyema, Chairman and CEO of Air Peace, told the world that Nigerians are paying the cheapest domestic air fares on the planet, the reaction was less "wow" and more "wait, what?" It’s a bold claim to make when travelers are currently staring at ticket prices that have tripled for the holiday season. But Onyema didn’t just drop the statement and walk away. He backed it up with specific numbers from across the Atlantic.

The comments came during an interview with ARISE NEWS on Sunday, December 28, 2025. The timing is crucial. We’re in the thick of the Yuletide travel rush, a period when airlines globally hike prices, but in Nigeria, the increase has felt particularly sharp. Onyema’s argument? Look at the US market. Specifically, look at Delta Air Lines.

The $400 vs. N125,000 Comparison

Here’s the thing: Onyema’s math is technically correct if you ignore context. He pointed to a short-haul flight between Atlanta and Charleston. It’s a hop that takes less than 50 minutes. For mid-January 2026, a one-way economy ticket sits around $399. That’s roughly ₦600,000 using his exchange rate multiplier of ₦1,500 per dollar.

In contrast, he noted that Air Peace still has tickets available for as low as ₦115,000 or ₦125,000. In dollar terms, that’s under $60. So, yes, a Nigerian flying domestically is paying a fraction of what an American pays for a similar short hop. But wait. This comparison ignores the sheer volume of subsidized infrastructure in the US versus the operational realities in West Africa. It also ignores what those "cheap" Nigerian fares actually mean for the industry’s survival.

Fare Hikes You Can’t Ignore

While Onyema highlighted the lower end of the spectrum, the reality on the ground tells a different story for most travelers planning their Christmas trips. Major carriers didn’t just nudge prices up; they jumped. Effective December 1, 2025, through January 2026, the pricing landscape shifted dramatically.

• Air Peace: Set fares at ₦350,500 for key routes like Lagos to Abuja, plus flights to the South-East and South-South regions.
• United Nigeria Airlines: Matched this aggressively, pegging comparable routes at ₦350,500.
• Ibom Air: Raised prices significantly for destinations like Enugu, Owerri, and Asaba. Tickets went from ₦125,500 to ₦335,500 starting December 11, 2025.

Take United Nigeria Airlines’ Lagos to Asaba route. A one-way ticket for December 24 was listed at ₦399,999. That’s not a "cheap fare." That’s a premium price tag for a regional flight. For the average Nigerian civil servant or small business owner, this isn’t a bargain hunt; it’s a budget crisis.

The Sustainability Paradox

This brings us to the twist in Onyema’s narrative. He admitted that the prevalence of these relatively cheap fares contributes to the high failure rate of local carriers. It’s a brutal truth. Airlines operate on thin margins globally, but in Nigeria, the margin is often nonexistent due to currency volatility, high fuel costs, and regulatory fees.

Onyema argued that airlines worldwide operate under similar conditions, implying that if US airlines can charge $400 for a 50-minute flight, Nigerian airlines should be allowed to price closer to international standards without being labeled greedy. There’s validity here. When you factor in the cost of jet A1 fuel, aircraft maintenance, and crew salaries paid in dollars while revenue comes in depreciating Naira, the math breaks quickly.

However, dismissing passenger frustration doesn’t help. The perception is that Nigerian airlines are extracting maximum value before the holidays, leaving many stranded. The gap between the ₦125,000 "proof point" Onyema cited and the ₦350,500+ reality for peak dates is where the public trust erodes.

What Experts Are Saying

Aviation analysts suggest that comparing Nigeria’s fragmented market to the consolidated US market is apples to oranges. In the US, competition on short routes is fierce, yet prices remain high due to established yield management systems. In Nigeria, competition exists but is constrained by limited fleet sizes and higher operational overheads.

The real issue isn’t just the price tag; it’s predictability. Travelers want to know that a ticket bought in October will still be viable in December. The sudden spikes seen with Ibom Air and United Nigeria Airlines create uncertainty. While Onyema’s point about global pricing disparities is intellectually interesting, it doesn’t solve the immediate pain of passengers facing threefold increases.

Looking Ahead: A New Pricing Model?

As we move into 2026, the question remains: Can Nigerian aviation survive on "cheapest in the world" fares? Probably not. The industry needs a sustainable model that balances affordability with viability. This might mean dynamic pricing that reflects true costs, rather than artificial suppression followed by holiday spikes.

For now, travelers are left with a choice: pay the premium for peace of mind or risk the last-minute scramble for those rare ₦125,000 seats. Onyema’s challenge to the public to "prove it" is accepted, but the proof lies in whether the industry can stabilize its pricing before the next festive season.