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Home Economy

Air Peace faces N2bn loss after union disruption

Quadri Olaitan by Quadri Olaitan
August 13, 2026
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Air Peace

JUST IN: Air Peace resumes flights after airport picketing

More than 100 flights were affected as aviation unions picketed Air Peace, while United Nigeria suspended operations in solidarity

Air Peace and United Nigeria Airlines suffered major operational disruption on Tuesday, August 11, 2026, after aviation unions picketed airports in Lagos and Abuja, with Air Peace putting its losses at more than N2 billion and more than 100 flights affected across the two carriers.

Also read: JUST IN: Air Peace resumes flights after airport picketing

The industrial action, led by the National Union of Air Transport Employees, Air Transport Services Senior Staff Association of Nigeria and National Association of Aircraft Pilots and Engineers, was supported by the Nigeria Labour Congress and Trade Union Congress.

The unions targeted Air Peace over alleged non-remittance of the five per cent Ticket Sales Charge owed to the Nigeria Civil Aviation Authority and other grievances relating to workers’ unionisation.

The action began in the early hours of Tuesday, blocking access to departure terminals and preventing scheduled flights from leaving Lagos and Abuja.

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Air Peace subsequently faced the most severe impact, with about 70 flights affected. United Nigeria Airlines also suspended its operations in solidarity with Air Peace, disrupting more than 30 additional flights.

The disruption left thousands of passengers stranded or scrambling to rearrange their journeys, while airlines were forced to absorb the immediate operational and financial consequences.

A costly day for airlines

United Nigeria was scheduled to operate multiple sectors using Boeing aircraft, CRJs, Embraer 190s and Embraer 145s.

A senior official of the airline said the affected aircraft would have carried about 1,200 passengers during the day if the disruption had not occurred.

Air Peace’s Chief Operating Officer, Oluwatoyin Olajide, said the airline alone lost more than N2 billion as a result of the action.

The combined impact on the two airlines has consequently been estimated at about N3 billion, although the figure for United Nigeria is an estimate based on the flights and aircraft affected rather than a confirmed loss figure.

Olajide described the picketing as unlawful, violent and disproportionate, arguing that the airline had been unfairly singled out over an issue affecting the wider aviation industry.

“The Director-General of the Nigeria Civil Aviation Authority has publicly stated that the airlines, and not Air Peace alone, are complying with the directives of the NCAA regarding the applicable payment,” she said.

She questioned why Air Peace was specifically targeted if the dispute over the five per cent charge affected other airlines.

The COO also rejected allegations that Air Peace prevented employees from joining trade unions, saying workers had voluntarily chosen not to unionise.

According to her, more than 98 per cent of Nigerian airlines were not unionised, making the issue broader than a single carrier.

Olajide further alleged that some union members encouraged passengers not to fly with Air Peace and claimed that some airline employees were physically attacked during the picketing.

She said a female employee was among those allegedly assaulted, raising questions about how workers’ rights could be defended through violence against workers exercising their own rights.

The airline has called for an independent investigation involving the Federal Government, security agencies, airport authorities and aviation regulators.

Dispute over the five per cent charge

At the heart of the confrontation is the Ticket Sales Charge, a five per cent levy collected from passengers and intended to support aviation agencies.

The unions have accused airlines of failing to remit money already collected from passengers, arguing that the alleged arrears have affected the implementation of collective bargaining agreements negotiated for workers in aviation agencies.

The dispute has been building for weeks.

In July, aviation unions issued a 14-day ultimatum to airline operators over the alleged non-remittance of the charge.

Domestic operators subsequently challenged the unions’ position and questioned their authority to threaten disruption of airline operations.

The NCAA has previously acknowledged longstanding disputes over airlines’ outstanding charges and introduced mechanisms designed to prevent fresh debts from accumulating.

The regulator has also pursued automatic deductions of the five per cent charges at source, reflecting the long-running difficulty of reconciling airline obligations with the aviation authorities.

Air Peace maintains that it has complied with the applicable NCAA directives and therefore disputes the unions’ characterisation of its position.

Unions reject Air Peace’s claims

The unions, however, have rejected Air Peace’s account and accused the airline of attempting to divert attention from the substance of their grievances.

Francis Akinjole, Secretary-General of ATSSSAN, said the allegations made by the airline were baseless and would be addressed by the union at the appropriate time.

“All those allegations are baseless, and that is their problem, honestly. First, they said we singled them out. Are they the ones to tell us how to carry out our struggle?” Akinjole said.

He argued that the unions could not reasonably ground every airline simultaneously in pursuit of their demands.

“Do they want us to ground all the airlines at once?” he asked.

Akinjole said the unions had seen the statements coming from Air Peace and would respond fully after reviewing the allegations.

The contrasting positions leave the central dispute unresolved.

Air Peace says it was unfairly targeted despite complying with the regulator’s payment directives, while the unions maintain that the airline is central to a broader dispute over statutory remittances and workers’ rights.

Wider concerns for Nigerian aviation

Beyond the immediate financial losses, Tuesday’s disruption has exposed deeper tensions within Nigeria’s aviation sector.

Air Peace has also raised concerns about airport security, particularly how protesters were able to reach restricted operational areas and disrupt passengers and airline workers.

The airline warned that prolonged industrial disputes of this nature could undermine confidence in the Nigerian aviation market, including among international partners and aircraft lessors.

The incident is also significant for passengers, who bear the immediate consequences when domestic flight schedules collapse.

Olajide said passengers had a constitutional right to travel without unlawful interference and suggested that unions should be held responsible for claims arising from the disruption.

The unions, on the other hand, have framed their action as the outcome of prolonged frustration after repeated attempts to resolve the dispute.

Domestic flight operations began resuming after the unions temporarily suspended the airport blockade, although the disruption left airlines facing the task of restoring schedules and passengers dealing with the consequences of missed journeys.

The immediate crisis may therefore have eased, but the underlying dispute remains.

At stake is not only the payment of a statutory aviation charge but also the relationship between airline operators, regulators and organised labour, as well as the protection of passengers and workers during industrial disputes.

Also read: BREAKING: Air Peace flight operations suspended nationwide

For an industry already facing considerable financial and operational pressures, the latest confrontation offers a powerful reminder of how quickly unresolved institutional disagreements can translate into significant losses and widespread disruption.

Quadri Olaitan
Quadri Olaitan

Quadri Olaitan is a journalist and contributor to Freelanews.com, covering news, public affairs, and human-interest stories.

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