Skip to main content

Airport tax revenue shrinks by GH₵400m, misses 2025 target by 20%

 Ghana’s airport tax revenue has dropped by GH₵400 million, missing its 2025 target by about 20 per cent, as the nearly GH₵2 billion projection failed to materialise.

Fresh data from the Ministry of Finance, analysed by JoyNews Research, shows the government targeted GH₵1.95 billion in airport tax inflows but realised approximately GH₵1.56 billion, resulting in a GH₵400 million shortfall.

This marks the first time since the pandemic year of 2020 that the revenue line has fallen short of its target. Between 2021 and 2024, airport tax collections consistently outperformed expectations, exceeding targets by an average of GH₵300 million annually.

A breakdown of the 2025 performance shows the sharpest shortfall occurred in the second half of the year, particularly in the third quarter. While the first quarter exceeded its target by GH₵27 million, revenues dipped by GH₵47 million in the second quarter. The situation worsened in the final two quarters, which recorded a combined shortfall of GH₵344 million.

The downturn coincided with a strengthening cedi against the US dollar, which appears to have impacted inflows from the second quarter onwards.

Meanwhile, airline ticket prices for both domestic and international travel are rising, as carriers begin implementing new government-imposed levies aimed at boosting revenue.

Government maintains that the levy is critical to addressing infrastructure gaps in the aviation sector. Proceeds are expected to fund key projects, including a concourse linking Terminals 2 and 3 at Accra International Airport, a 2,000-capacity car park at Terminal 3, and rehabilitation works at regional airports.

The new charges are set to increase travel costs across all routes. Domestic passengers will pay an additional GH₵100 per flight, while regional travel will attract an extra $30 for one-way tickets and $70 for return trips. International passengers will face a $50 surcharge on one-way tickets and $100 on return fares.

However, industry players warn the levy could undermine Ghana’s competitiveness. Some argue it may be a response to declining airport tax revenues and caution that, when combined with existing charges, it could make Ghana one of the most expensive aviation hubs in the region.

Concerns have also been raised about the policy’s alignment with an ECOWAS directive urging member states to reduce air transport taxes by 25 per cent to improve regional connectivity.

The increase comes at a time when airlines are already adjusting fares upward due to rising aviation fuel prices, partly driven by geopolitical tensions in the Middle East.

According to the Board of Airline Representatives in Ghana, the country could move from 9th to 3rd position among African countries with the highest airport charges if the levy is fully implemented — ranking behind Gabon and Sierra Leone.

Globally, average airport charges for return trips range between $30 and $34, compared to Africa’s average of about $68, further intensifying concerns about affordability and Ghana’s competitiveness in the aviation market.

Comments

Popular posts from this blog

NESCAFÉ Launches Real Vibes Text & Win Promo to Reward Coffee Consumers Across Ghana

 NESCAFÉ has launched the Real Vibes Text & Win Promo, an exciting consumer promotion designed to reward loyal coffee lovers and bring the brand’s My Coffee, My Vibe experience even closer to consumers across the country. Running from September to December, the promotion gives consumers the opportunity to enjoy their favourite NESCAFÉ coffee while standing a chance to win exciting prizes, including phones, motorcycles, airtime and the ultimate grand prize—an electric SUV. Speaking at the launch, Lily Ntim, Category Development Manager for NESCAFÉ, said the promotion reflects NESCAFÉ’s commitment to creating, rewarding and memorable experiences for consumers. “Today, we are excited to introduce the NESCAFÉ Real Vibes Text & Win Promo, a campaign designed to bring the My Coffee, My Vibe experience even closer to our consumers,” she said. She added that the campaign is not only about prizes, but also about celebrating the everyday moments consumers enjoy with their coffee. “T...

Ghana Home Loans

With interest rates declining, a more liquid environment and a macroeconomic stability, mortgage financing is expected to see an ease of credit. And Ghana Home Loans being a leader in this industry is expected to lead the way. Ghana Home Loans (GHL), a leader in home mortgage, continues to be the frontier in fulfilling dreams of many Ghanaians in homeownership. Since starting business in 2006, it has also provided many existing homeowners with Equity Release mortgages to support their businesses, pay educational fees, improve their properties, or simply pursue other personal hobbies and interests. Ghana Home Loans is a mortgage finance institution which operates under Bank of Ghana’s supervision as a non-bank financial institution. At present, the Company remains the only such institution that focuses exclusively on the provision of mortgage product. Through the Home Completion mortgage and Home Construction mortgage products, Ghana Home Loans has enabled many qualified applican...

Tender Committee recommends E&P for Damang Mine lease transfer

  A Tender Committee has recommended the grant of the mining lease for the Damang Gold Mine to Engineers and Planners Limited, following a competitive evaluation process conducted by the Minerals Commission. The recommendation comes after a tender process initiated under Regulation 258 of the Minerals and Mining (Licensing Regulations), 2012 (LI 2176), aimed at selecting a strategic investor to take over the mining lease and operations of the Damang mine. According to the report, four companies responded to the public tender announced in the media. Out of these, two firms were shortlisted by the Mineral Titles Department of the Minerals Commission and subsequently submitted to the Tender Committee for detailed assessment. After what was described as a comprehensive evaluation, Engineers and Planners Limited emerged as the highest evaluated bidder, leading to the Committee’s recommendation for the award of the lease. Gold Fields Ghana Limited, which has operated in the country since...