Airfare Prices to Rise as Airport Infrastructure Levy Takes Effect

Starting today, airfares for both domestic and international flights are set to increase as airlines begin enforcing the government’s new Airport Infrastructure Development Levy. The hike in ticket prices will apply to all travel routes.

Domestic passengers will face an additional GH¢100 for flights within Ghana. For regional flights, one-way tickets will incur an extra $30, while return tickets will see an increase of $70. International travellers will experience a $50 surcharge on one-way tickets and a $100 increase on return fares.

The government says the levy is necessary to address infrastructure challenges in the aviation sector. Funds raised from the surcharge will be directed toward important projects, including the construction of a concourse linking Terminals 2 and 3 at Kotoka International Airport, the creation of a 2,000-capacity car park at Terminal 3, and ongoing rehabilitation works at regional airports.

Aviation expert Sean Mendis supports the levy, emphasizing that Ghana must either raise domestic airport charges or risk the collapse of Kotoka International Airport (KIA) under the financial strain of subsidizing the entire airport system.

However, some industry stakeholders have raised concerns that the levy, coupled with existing taxes, could push Ghana’s airport charges to one of the highest in the region, potentially harming its competitiveness. Critics also point out that the new charges conflict with an ECOWAS directive, which encourages member states to reduce air transport taxes by 25% to enhance regional connectivity.

This increase also comes amid rising aviation fuel prices, partly driven by tensions in the Middle East. As a result, airlines have already begun adjusting their fares upward.

If the levy is fully implemented, Ghana could rise from 9th to 3rd place among African nations with the highest airport charges, following behind Gabon and Sierra Leone. For comparison, the global average airport charge for return trips is between $30 and $34, while Africa’s average stands at about $68, highlighting concerns about affordability and regional competitiveness.

Passengers are advised to brace for higher ticket prices from today, as the levy takes full effect.

Story by Efua Nessa

Source:Loco tv