Africa World Airlines Set to Review Ticket Prices in Response to Cedi’s Appreciation

There might be a relief in sight for domestic air travelers in Ghana as the Africa World Airlines hints at a possible review of its ticket prices in the coming days.

This means domestic air passengers are likely to finally catch a financial break after months of lamenting over high ticket prices should the review be in their favour.

Africa World Airlines (AWA) confirms that the upcoming ticket price review is in response to the cedi’s recent strengthening against major international currencies in the last months.

This upcoming review was confirmed to The High Street Journal by the Chief Operating Officer (COO) of AWA, Captain Kwasi Oteng.

Captain Kwasi Oteng explains that many of their service providers charge in dollars and hence the airline considers it prudent to review their prices at a time the cedi has strongly appreciated against the U.S. dollar.

Currently, he says the commercial team of the airline is analysing the numbers to come up with its decision in a few days.

AWA’s sole competitor, Passion Air has already announced a 10% reduction, also in response to the cedi’s recent gains, a move that has been widely welcomed by consumers and industry observers.

But could AWA’s upcoming price review be higher than its competitor? The COO says customers should patiently wait for the announcement in the coming days.

The Mounting Public Pressure

These developments are coming after growing public outcry over the lack of competition in Ghana’s domestic aviation space. With only two main players, AWA and Passion Air, many Ghanaians have raised concerns about limited consumer choice and high prices.

Key figure to champion this course is the Minister for Transport, Joseph Bukari Nikpe has earlier expressed that the domestic airlines are operating as near-monopoly. He therefore appealed to the airlines to cut prices as the GPRTU has offered a 15% discount to share savings with passengers.

Drop in Fuel Price and Cedi’s Appreciation Makes Strong Case

The pressure on domestic airlines intensified in recent weeks as the Ghana cedi showed signs of significant recovery, fueled by improved foreign exchange inflows, fiscal discipline, and strong support from the Bank of Ghana.

With many input costs, such as aircraft maintenance, insurance, and spare parts, priced in US dollars, the stronger cedi has effectively reduced airlines’ operating costs, leaving little justification for maintaining high ticket prices.

Both airlines are now responding to these favourable economic conditions.

 What This Means for Travelers

The review announcement offers a welcome reprieve to domestic passengers, particularly frequent flyers between Accra, Kumasi, Tamale, and Takoradi, who have seen prices more than double over the past three years.

This will comes a boost to economic activity as business people who wish to commute to major cities in the country faster and easier can now enjoy a little relief.

While both airlines appear to be responding to currency-driven cost reductions, analysts caution that the sustainability of lower fares will depend on broader reforms, such as improving airport charges, reducing taxes, and attracting new entrants into the domestic aviation space.

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