The Chairman of Air Peace, Allen Onyema, has said no Nigerian airline recorded an annual profit of $1 million in 2025 despite the substantial revenues generated by the aviation industry.

Onyema made the disclosure on Thursday at the 30th anniversary conference of the League of Aviation Correspondents in Lagos, where stakeholders examined the financial and operational challenges facing the sector.

Speaking on the theme, “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth,” Onyema said the profitability of Nigerian airlines was significantly lower than public perception, particularly amid complaints over rising airfares.

He said even Air Peace, which he described as the country’s largest carrier by revenue, did not make $1 million in profit during the year.

The airline chairman attributed the weak profitability of Nigerian carriers to the high cost of operations, including fuel, regulatory charges, airport fees, taxes and other levies.

He argued that the government should not regard airlines primarily as a direct source of revenue, saying the sector’s greater economic value comes from the activities it stimulates.

According to Onyema, aviation supports tourism, trade, employment and economic integration, which in turn generate revenue for the government.

Industry data presented at the conference showed that aviation contributes about $2.5 billion annually to Nigeria’s Gross Domestic Product and supports more than 217,000 jobs.

Onyema, however, said airlines face numerous taxes and charges imposed by government and aviation agencies, with several of the costs passed on to passengers through ticket prices.

He called for the removal of the five per cent Ticket Sales Charge and Cargo Sales Charge, proposing instead the adoption of a fixed unit charge that would place less pressure on airlines already dealing with high fuel and operational expenses.

The Air Peace chairman also advocated the harmonisation of aviation taxes and levies to eliminate duplication and instances of double taxation.

His position was supported by the Chairman of Bi-Courtney Aviation Services, Olalekan Babalakin, who was represented at the conference by the company’s Acting Chief Operating Officer, Remi Jibodu.

Jibodu cited the development of the Murtala Muhammed Airport Terminal 2 as evidence of what private investment can achieve when government and investors operate under a stable and predictable framework.

He said government revenue generation and aviation sector growth should be pursued together, arguing that a stronger industry would ultimately provide a more sustainable revenue base for the government.

Jibodu called for consistent policies, contractual certainty and an investment-friendly environment to attract long-term private capital into airport infrastructure.

Onyema maintained that the government needed to focus on creating conditions that would enable airlines to become more profitable and sustainable rather than relying heavily on the sector for immediate revenue.

“It is profitability that will sustain their existence and also sustain and grow air travel in Nigeria,” he said.

The Chairman of the League of Aviation Correspondents, Idris Suleiman, urged greater consultation among government, aviation regulators, airlines, airport operators, labour unions and investors before major fiscal and regulatory decisions are implemented.

The League said the key issue for policymakers should be determining the level of revenue the aviation sector can reasonably support without compromising its ability to expand and remain sustainable.