The government has urged domestic airlines to pass on the benefits of recent import duty exemptions to passengers by reducing airfares, as Transport Minister Joseph Bukari Nikpe appealed directly to carriers to let the savings “reflect on the Ghanaian traveller.”
The call comes amid growing public frustration over the cost of domestic air travel, with one-way tickets on the Accra–Tamale route reportedly selling for as much as GH¢2,600 and return fares between Accra and Kumasi reaching GH¢5,000. The minister made the appeal at the unveiling of Africa World Airlines’ (AWA) new 102-seater Embraer E190 aircraft at Kotoka International Airport on Saturday, September 19, 2026.
“We want to seize this opportunity to appeal to all the airlines, especially the leading domestic airlines, to also look at their affairs and let it reflect on the Ghanaian traveller, so that our people can also enjoy some reduction in airfares,” Mr. Nikpe said.
A Long-Sought Tax Relief
The duty exemption followed years of lobbying by Ghana’s two main domestic carriers, AWA and PassionAir, which had urged the government to reduce taxes on aircraft spare parts, import duties, and other operating costs they said were constraining growth. President John Dramani Mahama announced the policy on August 27, 2026, during a groundbreaking ceremony for a new multi-purpose car park and airport hotel complex at Accra’s Kotoka International Airport, stating that he had assented to amendments to the Ghana Customs Act, 2026.
“We want to make domestic airlines safer, so if they bring in any parts to maintain their aircraft, they will come in duty- and tax-free,” President Mahama said at the time.
The exemption removes a significant cost burden for domestic operators, which rely on imported components to maintain their fleets. Lower maintenance costs could improve airlines’ cash flow, support fleet expansion and route development, and potentially enable more competitive fares on domestic routes.
AWA’s Chief Operating Officer, Sohail Mahmood, welcomed the policy, saying: “Ghana historically levies some of the highest aviation taxes on the continent, and although we have successfully navigated this environment, this policy change fundamentally improves our operational economics. Ultimately, this exemption provides substantial financial relief and strongly supports our strategy to expand AWA beyond a regional carrier”.
The New Embraer E190
The new Embraer E190, registered 9G-FDA, arrived at Kotoka International Airport on Saturday, September 19, 2026, following a three-day delivery journey from China, travelling through Kazakhstan, Armenia, and Tunisia. The aircraft is configured with 14 premium economy seats and 88 economy seats, providing passengers with additional travel options and improved comfort.
The E190 is the first of several aircraft AWA plans to acquire over the next year as the airline seeks to expand its operations. Until now, AWA’s fleet consisted of eight smaller ERJ-145 aircraft, and the introduction of the E190 marks a significant upgrade, transitioning the airline from “small-scale regional feeder” operations to the “medium-range mainstream route” market.
AWA Founder Togbe Afede XIV, in a speech delivered on his behalf by Yvonne Botchwey, Managing Director of the World Trade Centre, Accra, thanked the government for the import duty exemptions. “We are particularly grateful to His Excellency President John Mahama for the import duty exemptions he announced recently for domestic airlines,” he said. He added that AWA was ready to support the government’s plans for the transport sector, including efforts to establish a national carrier. “We at AWA are committed to supporting his vision for the transport sector, and I am happy to be able to say that our experience has prepared us to partner the government in the establishment of the National Carrier.”
The Ghana Airports Company Limited (GACL) has also described the acquisition as a boost to Ghana’s ambition to become a leading aviation hub in West Africa.
Why Domestic Airfares Remain High
The appeal for fare reductions comes against the backdrop of a duopoly in Ghana’s domestic aviation market. The market is controlled by only two airlines — Africa World Airlines and PassionAir — a structure that the Ghana Airports Company Limited has identified as a key factor behind expensive ticket prices. “The price of domestic tickets is indeed quite expensive. We are about number four in the region and rank about 15 in the world in terms of cost,” said Yvonne Nana Afriyie Opare, Managing Director of GACL.
Transport Minister Nikpe has previously expressed concern over the limited competition in Ghana’s domestic airline industry, describing it as “a kind of monopoly” keeping fares rigid. In September 2026, he urged domestic airline operators to follow the example of road transport operators, who had recently cut their fares by 15 per cent. He confirmed that the government is in active discussions with airline operators, who have expressed a willingness to consider some reductions.
The cost pressures on airlines are substantial. Aviation fuel is one of the major components contributing to high airfares, with airlines typically spending up to 40 per cent of operating costs on fuel. In Ghana, jet fuel rose to GH¢17.68 per litre in April 2026 from GH¢9.04 in February, marking a 95 per cent increase driven by war-related disruptions in the Middle East. Globally, jet fuel prices surged more than 120 per cent at their peak, reaching US1,500.
Added to this is the Airport Infrastructure Development Charge (AIDC), which took effect on April 1, 2026, imposing an additional GH¢100 per one-way domestic ticket. The levy, announced in November 2025, also adds US100 to international round-trip tickets. Industry players warned at the time that the new charges, coming on top of existing taxes, could make Ghana one of the most expensive aviation markets in the region.
Togbe Afede XIV, AWA’s founder, has attributed the high fares to foreign exchange costs, customs duties, low passenger numbers, and limited airport operating hours.
Path to Lower Fares
The Ghana Civil Aviation Authority (GCAA) has signalled that increased competition may be on the horizon. GCAA Director-General Rev. Stephen Wilfred Arthur said at least two new local airline operators are at an advanced stage of certification to begin operations. “The anticipated entry of new airlines is expected to drive competition and ultimately contribute to lowering fares within the sector,” he said, adding that additional applications are currently under review.
Rev. Arthur also noted that the recent appreciation of the cedi against the US dollar should help ease cost pressures on airlines. In July 2026, AWA announced plans to review its domestic ticket prices downward in response to the cedi’s sustained appreciation, following competitor PassionAir’s implementation of a 10 per cent fare reduction.
Infrastructure Upgrades
Beyond fare reductions, the government has committed to improving aviation infrastructure across the country. Minister Nikpe has announced upcoming upgrades to the runways of the Prempeh I International Airport in Kumasi and the Tamale Airport. The GCAA is also completing ongoing projects at Kotoka International Airport, including the construction of a modern air traffic control tower expected to be completed by the end of 2026, which will significantly enhance airspace management systems, radar surveillance, and communication efficiency.
As the new E190 prepares to enter service on domestic routes, the coming months will test whether the combination of duty relief, fleet expansion, and new market entrants can deliver the fare reductions the government is demanding — and that Ghanaian travellers have long awaited.
