Sanusi: Huge taxes contributory factor to airline high mortality rate

The Chief Executive Officer of Aero Contractors, Capt. Ado Sanusi has again highlighted the difficulties airlines face in the country.

Sanusi, who spoke to Aviation Metric at the weekend, lamented that the huge taxes faced by carriers are a contributing factor to airlines death, stressing that they form a major contributory factor to aircraft going under.

His words, “The reason is that airlines are heavily taxed in this country. There’s multiple taxation because you’re not only talking about taxes, you’re talking about customs taxes, you’re talking about CAC taxes. So many taxes that you pay apart from even the normal aviation taxes that you pay, stamp duty taxes, all those things contribute to this.”

The airline chief corroborated a statement by the International Air Transport Association (IATA) recently that African airlines pay among the highest taxes in the world.

“I believe why IATA said that is because they took an average. They took an average and I’m very convinced that Nigeria contributed to the highest average of that average that they took.”

IATA’s Vice President for Africa and the Middle East, Kamil Al Awadhi, at a briefing at the recently concluded Annual General Meeting (AGM) of the association in New Delhi, India, lamented that the cost of doing business in Africa is among the highest in the world, stressing that it is expensive to do business in the continent.

He stated that in some African countries, passengers pay more in taxes and fees than the base airfare itself, noting that a $100 ticket can carry $60–$70 in charges—pricing out travelers and hurting demand.

Al Awadhi disclosed that African airlines face unique cost challenges, particularly high operational costs, which are significantly higher than the global average.

He listed fuel prices at 17% higher than the global average, accounting for 40% of operating costs in Africa, compared to 25% globally (2024 data).

Taxes, fees and charges, he reiterated are at 12-15% higher than in other regions with air navigation charges (ANC) which he said is 10% higher, while maintenance, insurance, and cost of capital he noted is 6-10% more expensive.

Not a few believe that these costs discourage the growth of air transport in the region and increase the cost of flight tickets.

As catalyst to economic development, air transport they opined should not be seen as luxury rather should be seen as the fastest and most efficient means of connecting people who include entrepreneurs, families, policy makers and others who drive the economy of any nation.

Taxing aviation highly makes it a luxury instead of being an enabler. Air transport should be for families to connect, for businesses to be transacted across the continent.

African airlines pay more for fuel than other operators in the other continents of the world. Fuel surcharge, which government aviation agencies collect from airlines, is one of the factors that increase the cost of flight tickets paid by travellers.

In terms of Jet fuel (aviation fuel) within the continent, the continent’s airlines are already paying such a high premium. The cost of the product is two times, sometimes even five times more than what airlines in Europe and the Middle East are paying for fuel, which puts them already at a disadvantage.

In addition to the high cost of doing business, Al Awadhi said Africa’s aviation market faces challenges of access restrictions, limited competition and limited capacity.

His words, “On protectionist policies, restrictive bilateral agreements limit competition, reducing route availability and keeping fares high. Most African airlines are small operators with limited fleet sizes and route networks, lacking economies of scale to lower costs and become more competitive.”

Wole Shadare