Currency mismatch threatens airline survival, United Nigeria Airlines executive warns

The mismatch between naira earnings and foreign-currency expenses is forcing Nigerian airlines to absorb heavy losses just to stay afloat. Adedayo Olawuyi, Chief Commercial Officer of United Nigeria Airlines, made this known on Tuesday at the AeroWest conference in Lagos.

Olawuyi spoke during a panel session themed, ‘The Real Cost of Running Aviation Business: Fixing Connectivity, Affordability, FX, Fuel and Border Friction’. He said airlines operate under a difficult financial structure, with revenue largely generated in naira while a substantial share of expenses is denominated in foreign currency.

Airlines ask FG to cut charges and taxes

Indigenous carriers are also asking the Federal Government to reduce aviation charges and taxes. Olawuyi said the high cost of doing business is pushing up airfares and making air travel less affordable for Nigerians.

He pointed to the high cost of financing as another major challenge, questioning the logic of borrowing at current rates to run businesses with thin margins.

“How many of you would take a loan of 30 per cent to invest in a business that gives you less than five per cent profit? That is a pressing issue for airlines in Africa, specifically in Nigeria,” he said.

Pilot shortage, MRO gaps and fuel costs pile up

Olawuyi also raised the issue of pilot training costs, noting that pilots are in high demand and not cheap to find. He said some Nigerian airlines have grounded aircraft simply because no pilots are available.

He lamented the absence of adequate Maintenance, Repair and Overhaul facilities in Nigeria and the region. As a result, airlines must send aircraft abroad for maintenance, increasing their foreign exchange exposure.

On aviation fuel, Olawuyi said the sharp rise in Jet A1 prices had made things worse. He said airlines moved from buying fuel at about N900 per litre in December 2025 to around N3,000 per litre in 2026, calling it a clear example of rising operating costs.

He maintained that airlines cannot cut spending on maintenance, training or safety without endangering operations and passengers.

Government must act, airlines alone cannot fix it

Olawuyi urged the government and other stakeholders to create a more enabling environment for airlines. He insisted that improving connectivity and affordability should not be left to carriers alone, and warned that excessive charges would ultimately hurt the industry that government agencies depend on for revenue.

“While we are discussing connectivity as a solution to the problems we see today, it is not just the airlines alone that can solve the problem. Government needs to create an enabling environment for us,” he said.

“We all focus on making money from airlines. As my boss says, the airline is the goose that lays the golden egg, and everybody wants a piece of it. But at the end of the day, if the goose dies, everything is lost,” he added.

On route economics, Olawuyi said airlines must balance the push for connectivity against commercial realities, especially on routes with low passenger volumes. For Nigerian consumers, the warning is clear: without government intervention on charges and the broader cost structure, airlines may be forced to keep passing rising costs to passengers or cut back on routes.