The Federal Competition and Consumer Protection Commission (FCCPC) has revealed findings from an investigation indicating that some domestic airlines engaged in price manipulation during the 2025 Yuletide season. However, the Airline Operators of Nigeria (AON) has strongly rejected the commission’s position, describing it as harmful and uninformed.
The FCCPC said its probe, carried out by the agency’s Department of Surveillance and Investigations, relied on pricing data obtained from domestic carriers. According to the commission, airfares surged significantly across several routes during the festive period, even though key cost drivers such as aviation fuel prices, government charges, and foreign exchange rates remained relatively stable.
In a statement issued by the commission’s Director of Corporate Affairs, Ondaje Ijagwu, the agency stated that the observed fare increases appeared to stem from what it described as arbitrary pricing decisions rather than regulatory or operational cost changes.
“The differences observed in fares appear to reflect airlines’ arbitrary pricing decisions, including yield management and capacity allocation, rather than any variation in regulatory fees,” the statement read.
The commission further noted that route-level analysis showed that higher fares coincided with reduced seat availability during predictable seasonal demand peaks. On high-density routes, peak fares were reportedly clustered within narrow ranges across multiple operators, raising concerns about possible coordinated pricing behaviour.
During the festive season, ticket prices on certain routes, particularly to the South-East and South-South regions, rose by more than 131 per cent. For example, a one-way economy ticket from Lagos to Asaba increased from ₦147,000 to ₦337,500. Similarly, fares for Lagos to Enugu and Lagos to Benin climbed from ₦145,000 to ₦335,500. The Abuja to Benin route recorded a comparable increase within the same period.
Reacting to the commission’s preliminary findings, AON spokesperson, Professor Obiora Okonkwo, dismissed the report, arguing that the FCCPC lacks the expertise to assess airline pricing structures.
“I have not read the details of the report, but what the FCCPC is doing is very detrimental to the survival of domestic operators,” Okonkwo said. “They do not understand the economics of airlines or possess the professional expertise to interfere in how prices are determined. As far as AON is concerned, they are playing to the gallery and should not be taken seriously.”
While affirming respect for government institutions, he maintained that the association would not accept conclusions it believes are not grounded in operational realities.
Okonkwo explained that airline pricing follows a structured yield management system, where different ticket classes—ranging from low to premium—are sold at varying rates. According to him, airlines calculate their overall revenue by combining ticket sales across these categories and dividing by the total number of seats available, including unsold seats, to determine profitability.
He noted that even when some passengers pay high fares, others may have purchased tickets at significantly lower rates. He also emphasized the high operational costs faced by Nigerian carriers, including aircraft acquisition, spare parts procurement from international markets, pilot remuneration, and maintenance expenses.
“We buy aircraft from the same global market as larger international airlines. Spare parts come from the same sources. The cost of operations in Nigeria is even higher,” he said.
The dispute between the FCCPC and domestic airline operators highlights ongoing tensions over airfare regulation, especially during peak travel seasons when demand significantly outpaces available seats.
FCCPC Alleges Airline Fare Manipulation, AON Pushes Back Over Pricing Authority
