The Custodian Newspaper Online
No Result
View All Result
Monday, September 21, 2026
  • Home
  • News
  • Politics
  • Business
  • Opinion
  • Showbiz
  • Health
  • Sport
  • World
  • eStore
The Custodian Newspaper Online
  • Home
  • News
  • Politics
  • Business
  • Opinion
  • Showbiz
  • Health
  • Sport
  • World
  • eStore
No Result
View All Result
The Custodian Newspaper Online
No Result
View All Result
Home Featured

High domestic airfares: Can government act?

Rising domestic airfares are putting pressure on travellers as calls grow for government action to make air travel more affordable

by The Custodian News
September 21, 2026
in Featured, MAIN, News
0
High domestic airfares: Can government act?

Domestic airlines

152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

A recent social-media post on the high cost of domestic air travel has touched a genuine public concern. Many consumers now see domestic flying as beyond the reach of ordinary workers and families. The post deserves attention. Public anger, though, is a starting point for inquiry, not proof of exploitation. We need to move away from emotion and examine the forces pushing prices up.

Domestic airfares sit inside a broader Ghanaian cost problem which I have termed “the Ghanaian pricing culture.” Hotel rooms, residential accommodation, office rent, car rentals, imported equipment, professional services and many everyday business inputs often feel expensive relative to income levels. Some real estate developers’ houses are expensive compared with the same specification in North America and Europe. Airlines buy many of those same inputs. They also face aviation-specific costs, many priced in dollars. Expensive tickets therefore reflect both the structure of aviation and the wider cost of doing business in Ghana.

Africa World Airlines and PassionAir aircraft. Image sources: Wikimedia Commons and TW Radio.

The structure of the market can impact the cost of flight. In November 2012, I paid about US$36 for a return Fly540 ticket between Accra and Kumasi. The market had four players namely: Starbow, AWA, Citylink and Fly540. The prices began to increase when we moved from a market of four players in 2013 to one player in 2017. Passion Airlines entered the market in 2018.  Today, Africa World Airlines and PassionAir are the two main scheduled domestic operators.

2. What the fare survey shows

On 6 September 2026, I searched return fares for travel from 28 September to 5 October 2026. Ghanaian fares came from airline websites. Selected African and Indian fares came through Expedia, while European fares came from Google Flights. The exercise is a snapshot, not a controlled econometric study. It still provides a useful indication of the consumer prices on offer.

Figure 1  Average lowest and highest return fares in the surveyed markets

Across five Ghanaian routes, the average lowest return fare was US$313.06 and the average highest was US$450.48. Across 12 routes in Nigeria, South Africa, Kenya and India, the averages were US$181.50 and US$227.00. Ghana’s average lowest fare was about 72 percent higher, while its average highest fare was close to twice the comparator average.

The European evidence adds balance as the average lowest fare across 16 domestic routes was US$191.25, about 39 percent below Ghana’s average. Yet the average highest European domestic fare was US$448.31, almost the same as Ghana’s US$450.48. European regional routes had still higher maximum fares. Ghana therefore looks especially expensive at the bottom of the fare range. The data do not support the claim that every foreign flight is cheaper.

3. Why domestic fares are high

A high ticket price is not the same as a high profit. Proving excessive pricing would require airline-level evidence on load factors, passenger yields, aircraft use, leases, financing, fuel, maintenance, insurance, airport charges, route profitability and return on capital. Those data are not publicly available.

First, aviation carries large fixed costs. Aircraft leases or financing, insurance, staff training, certification, reservation systems and administration continue whether a flight is full or half empty. A short flight is not proportionately cheap. An eleven-hour flight from London Heathrow to Los Angeles LAX is fair cheaper than a six hour flight from Accra to London Heathrow by the same carrier.

Second, Ghana has limited scale. The Ghana Civil Aviation Authority recorded 903,227 domestic passenger movements in 2025. A return traveller counts twice. Kumasi accounted for about 54 percent of movements, Tamale 24 percent and Takoradi 15 percent. Thin routes and uneven demand make frequent service harder to sustain. If an illustrative 50-seat flight costs GH¢40,000, the cost is GH¢889 per passenger with 45 passengers and GH¢1,333 with 30, before profit.

Third, airlines face currency and input-cost pressure. Revenue is largely earned in cedis, while leases, engines, spare parts, insurance and some maintenance are paid in foreign currency. Fuel is also a major operating expense. IATA data show that African airlines face high unit costs compared with carriers elsewhere. Depreciation or a fuel-price shock passes quickly into the cost base.

Fourth, competition is limited. Two airlines do not prove collusion or abuse, but fewer independent rivals reduce the pressure to discount, innovate and pursue marginal passengers. International evidence links low-cost entry and contestable routes with lower fares. Destinations served by multiple operators normally see price competition this explains why trans-Atlantic flights between Europe and America are cheaper compared to flights from Europe/America to African destinations. The market is the best and the most efficient means of determining prices.

Fifth, government charges form part of the fare. Since 1 April 2026, the Airport Infrastructure Development Charge has added GH¢100 to each one-way domestic journey, or GH¢200 to a return trip. GACL also publishes landing, parking and specified lighting charges. Infrastructure needs funding, but a fixed charge weighs more heavily on a short domestic journey and raises the lowest viable ticket price.

Lastly, the Russian-Ukraine and the Middle East wars have pushed fuel prices above the roof. Airlines are allowed to charge for fuel surcharge whenever fuel prices go up. Currently, AWA charges GHC 440 and Passion Airlines GHC 150 for fuel surcharge on a return trip. Airlines must recover cost and make profit to make their business more sustainable.

4.0 What government should do

The Government’s ambition to make Accra an aviation hub for West Africa will require deliberate action to address the factors driving up domestic airfares. The Ministry of Transport, the Ghana Civil Aviation Authority and Ghana Airports Company Limited should consider the following measures:

  1. Undertake comparative cost studies

The Government should study selected developing and emerging economies where domestic airfares are lower. The study should compare the full cost structure of operating domestic airlines in those countries with the cost structure in Ghana.

Where the analysis identifies taxes, charges or regulatory costs that place Ghanaian airlines at a disadvantage, the Government should take steps to reduce them. Lower operating costs should support lower airfares. Lower fares should stimulate passenger demand, improve aircraft capacity utilisation and strengthen airline profitability, all other factors remaining equal. Stronger airline performance would also increase corporate tax revenue for the State.

  1. Remove or reduce the airport infrastructure charge

The Government should consider removing or reducing the GH¢100 airport infrastructure charge. This charge increases the final ticket price paid by passengers and places an additional burden on domestic air travel.

  1. Encourage new entrants into the domestic market

The Government should create conditions that attract new airlines into the domestic market, with particular attention to low-cost carriers. Additional entry would expand consumer choice, increase capacity and strengthen price competition.

  1. Strengthen competition oversight

The GCAA should continue monitoring the domestic aviation market to support fair competition, encourage market entry and identify practices that might restrict consumer choice or market growth.

Market concentration does not necessarily indicate improper conduct. Given the limited number of domestic operators, regular market reviews and constructive engagement with industry stakeholders would support competition, service quality and consumer welfare.

By Appiah Kusi Adomako, Esq

NB: The writer is a lawyer and a competition economist, and a consumer protection advocate. He is the Director, West Africa Regional Centre of CUTS International. He can be contacted via email: apa@cuts.org or www.cuts-accra.org or 0302-254-5652.

Tags: Ghana Airport Company Limited
  • Latest
  • Trending
High domestic airfares: Can government act?

High domestic airfares: Can government act?

September 21, 2026
AFCON qualifiers: Mohammed Kudus withdraws from Ghana squad

AFCON qualifiers: Mohammed Kudus withdraws from Ghana squad

September 21, 2026
Lumumba urges African leaders to study Nkrumah

Lumumba urges African leaders to study Nkrumah

September 21, 2026
Mahama calls on Ghanaians to uphold Nkrumah’s legacy

Mahama calls on Ghanaians to uphold Nkrumah’s legacy

September 21, 2026
Headmaster Agbana Dzosec

Agbana slams Lobbyists trying to replace DZOSEC Headmaster

January 29, 2026
Dzosec Arrest Headmaster

DZOSEC: Audit Report Calls for Arrest of Former Headmaster

August 23, 2025
Newspaper Frontpages – Thursday, 29th January, 2026

Newspaper Frontpages – Thursday, 29th January, 2026

January 29, 2026
Newspaper Frontpages – Wednesday, 25th February, 2026

Newspaper Frontpages – Wednesday, 25th February, 2026

February 25, 2026

The CustodianGh Online’s vision is to become the most preferred go-to news brand in Ghana.

Contact Us

thecustodiangh@gmail.com

Popular Categories

  • News
  • Business
  • Politics
  • Sport
  • Arts & Showbiz
  • Tech

Archives

© 2025 The CustodianGh Online - All rights reserved.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Opinion
  • Showbiz
  • Health
  • Sport
  • eStore

© 2025 The CustodianGh Online - All rights reserved.