Ghana domestic airfares driven by small market and high costs

Economist Professor Peter Quartey has identified several factors contributing to high domestic airfares in Ghana, including a limited aviation market, low consumer incomes, high taxes, fuel prices, and the cost of borrowing.

Quartey noted that Ghana’s domestic market lacks the scale and competition found in larger neighboring countries like Nigeria, where higher passenger volumes and more aircraft typically drive prices down. He also observed that lower income levels compared to nations like South Africa force most citizens to rely on road transport, such as buses or trotros, rather than flying.

Beyond the aviation sector, Quartey suggested these high costs reflect broader economic pressures in Ghana, citing expensive hotels and rent. He specifically criticized the tax burden on the aviation industry, stating that airlines pass these costs on to consumers.