High Cost of Domestic Airline Fares: Can government do something about it?

The high cost of domestic air travel in Ghana has become a significant concern for many consumers, who perceive flying within the country as unaffordable for ordinary workers and families. Public anger towards rising fares has led to questions about the underlying factors contributing to the price increase. However, it is important to examine these factors objectively and not jump to conclusions about exploitation.

The high ticket prices are reflective of a broader issue in Ghana known as "the Ghanaian pricing culture," which affects various sectors such as hotel rooms, residential accommodation, office rent, car rentals, imported equipment, and professional services. This culture is driven by expensive inputs and aviation-specific costs, many of which are priced in dollars.

Several factors contribute to the high cost of domestic flights in Ghana. The market structure has shifted from a four-player market in 2013 to a one-player market in 2017, with only Passion Airlines and Africa World Airlines currently operating scheduled domestic flights. This limited competition reduces the pressure for airlines to offer discounted fares or innovate to attract marginal passengers.

High fixed costs associated with aviation, such as aircraft leases, insurance, staff training, certification, reservation systems, and administration, make short flights less cost-effective. Additionally, the limited scale of the Ghanaian market, with only 903,227 domestic passenger movements recorded in 2025, makes it challenging for airlines to sustain frequent service on thin routes with uneven demand. This further drives up ticket prices as airlines struggle to maintain profitability on short routes.

Currency and input-cost pressure also play a role in the high cost of domestic flights. Revenue is earned in cedis, while leases, engines, spare parts, insurance, and maintenance are often paid in foreign currency. Fuel, being a major operating expense, is also priced in dollars, making it vulnerable to depreciation and fuel-price shocks that quickly impact the cost base.

Government charges included in the fare, such as the Airport Infrastructure Development Charge, add to the overall cost of domestic travel. Since April 2026, a GH¢100 charge has been added to each one-way domestic journey, and GH¢200 to return trips. While infrastructure needs funding, a fixed charge significantly affects short domestic journeys, raising the lowest viable ticket price.

Lastly, the ongoing Russia-Ukraine and Middle East wars have pushed fuel prices to unprecedented levels. Airlines are required to charge fuel surcharges when fuel prices rise, which currently stands at GHC 440 for AWA and GHC 150 for Passion Airlines on a return trip. Airlines must recover costs and make a profit to ensure the sustainability of their operations.

To address the high cost of domestic air travel in Ghana, the government should take deliberate action to tackle the factors driving up fares. This includes addressing the limited competition in the market, increasing the scale of the aviation industry, managing currency and input-cost pressures, and exploring options to mitigate the impact of high fuel prices.

By taking these steps, the government can work towards making domestic air travel more affordable for ordinary Ghanaians and contribute to the country's ambition to become a major aviation hub in West Africa.