Rising Aviation Taxes Threaten Ghana’s Competitiveness, Industry Players Warn

Players in Ghana’s aviation industry are warning that rising taxes and passenger charges risk suppressing travel demand and weakening the country’s competitiveness within Africa’s aviation market.

The concerns follow Parliament’s passage of the Airport Infrastructure Levy Bill, which introduces a US$100 Airport Infrastructure Development Charge (AIDC) on international airfares and GH¢100 on domestic flights.

Industry stakeholders argue that the move runs counter to continental efforts to lower the cost of air travel and stimulate connectivity across Africa.

IATA: Ghana Moving Against Regional Reform Agenda

The International Air Transport Association (IATA) has sharply criticised the policy, warning that it undermines regional integration goals.

Speaking at the Aviation Ghana Breakfast Meeting, IATA Vice President for Africa and the Middle East, Kamil Al-Awadi, said Ghana’s approach is inconsistent with ongoing reforms in the sub-region.

“ECOWAS has rightly demanded the elimination of air transport taxes and a 25% reduction in passenger and security charges from January 2026,” he said.

“However, recent measures by Ghana, including the increase in airport passenger service charges for international travel from US$5 to US$100 and the introduction of a US$9 API fee, make travel more expensive and undermine competitiveness.”

According to IATA, higher charges discourage travel, limit route expansion, and weaken the viability of airlines operating in smaller African markets.

Airlines Warn of Declining Demand and Route Cuts

Local industry representatives have echoed these concerns, warning that the new levy could make Ghana one of the most expensive aviation markets in the world.

Stellamarie Ndunge, representing the Board of Airline Representatives, Ghana, said the industry is deeply worried about the impact of the levy when it takes effect.

“We are deeply concerned by the coming AIDC charge of US$100 on return tickets scheduled for April 1, 2026,” she said.

She explained that the levy would push total departure charges from US$173 for one-way tickets to US$243 for return tickets, placing Ghana among the top 10 most expensive countries globally in terms of passenger charges.

“This will make air travel less attractive and constrain airlines’ ability to expand routes into and out of Ghana,” she added.

Ghana Risks Becoming One of Africa’s Most Expensive Aviation Markets

Data from the Board of Airline Representatives Ghana shows that Ghana is projected to move from 9th to 3rd place in Africa for the highest airport charges if the levy is implemented—trailing only Gabon and Sierra Leone.

Globally, average airport charges on return trips range between US$30 and US$34, while the African average stands at about US$68.

West Africa, however, already records some of the highest aviation charges on the continent, with averages approaching US$110 per return trip—a figure industry players say is unsustainable.

Industry Calls for Policy Rethink

Stakeholders argue that instead of stimulating infrastructure development, the levy risks pricing Ghana out of the regional aviation market at a time when Africa is pushing for cheaper, more connected skies under initiatives such as the Single African Air Transport Market (SAATM).

They warn that sustained increases in passenger charges could reduce traffic through Kotoka International Airport, weaken Ghana’s hub ambitions, and ultimately hurt tourism, trade, and investment.

Industry players are therefore calling on government to reconsider the structure and timing of the levy, engage stakeholders more deeply, and align Ghana’s aviation policy with regional and continental competitiveness goals.