AON slams regulator’s interim findings as “misguided and harmful,” insists pricing reflects harsh economic realities, not collusion….
A fresh standoff is brewing between Nigeria’s domestic carriers and the country’s competition watchdog following allegations that airlines inflated ticket prices during the 2025 yuletide rush.
The Federal Competition and Consumer Protection Commission (FCCPC) revealed on February 26 that its ongoing review uncovered evidence suggesting some local airlines significantly increased fares on select routes during the festive period. According to the Commission, ticket prices on certain South-East and South-South routes surged by more than 131 percent at the height of the holiday travel season.
But the Airline Operators of Nigeria (AON) has fired back strongly, dismissing the interim report as flawed and potentially damaging to an already fragile aviation industry.
In a statement issued in response, AON spokesperson and Chairman of United Nigeria Airlines, Obiorah Okonkwo, said domestic carriers respect government institutions but would not accept conclusions that ignore the operational and economic complexities of running an airline in Nigeria.
“They do not understand the economics of the airline industry,” Okonkwo said, arguing that pricing decisions in aviation are driven by multiple cost variables, including fuel prices, foreign exchange volatility, aircraft leasing obligations, insurance, and maintenance expenses.
He described the Commission’s position as an attempt to “play to the gallery,” stressing that regulators without industry expertise risk misrepresenting market realities. While acknowledging that he had not reviewed the full report, Okonkwo warned that premature or inaccurate conclusions could threaten the survival of local operators already grappling with rising costs and thin profit margins.
The FCCPC, however, maintains that its actions fall squarely within its statutory mandate to protect consumers and promote competitive markets. The agency’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the review was designed to provide clarity on pricing patterns during predictable peak travel periods.
“This assessment is not intended to disrupt legitimate commercial activity,” Bello stated, noting that the Commission’s responsibility is to ensure that pricing behaviour remains consistent with competition and consumer protection laws.
He emphasized that the findings released so far are only preliminary. A more detailed structural and route-level analysis is ongoing, and any regulatory guidance or enforcement action will be based strictly on the final outcome of the investigation.
The dispute underscores a recurring tension in Nigeria’s aviation sector: the balance between commercial sustainability and consumer affordability. While passengers often complain of sharp fare increases during festive seasons, airlines argue that peak-demand pricing is standard global practice especially in markets where operating costs remain high and access to foreign exchange is constrained.
With the FCCPC yet to release its final verdict, industry observers say the coming weeks could shape not only regulatory oversight in the sector but also public perception of how airline ticket prices are determined in Nigeria.
As both sides dig in, travellers and operators alike await the Commission’s final findings and what they could mean for the future of domestic air travel.
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