The Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has warned that domestic economy airfares could climb above N1 million from next year.
He made this known during an interview on The Morning Show on Arise News on Sunday, linking the possible hike to the upcoming implementation of the new tax reform laws set to take effect from January 2026.
According to him, the laws remove several tax exemptions previously granted to airlines under the 2020 Finance Act, which had helped reduce operating costs.
Onyema said the removal of these incentives would sharply increase the cost of operations, forcing airlines to pass the burden onto passengers.