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

Ghana’s airport tax revenue has fallen short of expectations, dropping by GH₵400 million and missing the 2025 target by approximately 20 per cent. The Ministry of Finance’s latest data, analysed by JoyNews Research, shows that the government had projected nearly GH₵2 billion in airport tax inflows, targeting GH₵1.95 billion, but realised only about GH₵1.56 billion, resulting in the significant shortfall.

This marks the first time since the pandemic year of 2020 that airport tax collections have failed to meet the set target. Between 2021 and 2024, revenues consistently exceeded expectations, surpassing targets by an average of GH₵300 million annually, highlighting the abrupt nature of the 2025 downturn.

A detailed breakdown of the 2025 performance indicates that 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, the second quarter saw a dip of GH₵47 million. The final two quarters recorded a combined shortfall of GH₵344 million. Analysts note that the decline coincided with a strengthening cedi against the US dollar, which appears to have impacted inflows from mid-year onwards.

In response to the shortfall, the government has introduced new levies on airline tickets for both domestic and international travel, aiming to boost revenue for the aviation sector. These charges are expected to fund critical infrastructure 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 levies will raise travel costs across all routes: domestic passengers will pay an additional GH₵100 per flight, regional travelers will face a $30 surcharge for one-way tickets and $70 for return trips, while international passengers will pay $50 for one-way and $100 for return flights.

Industry stakeholders, however, have warned that the levy could undermine Ghana’s competitiveness in the aviation market. Some argue that the policy, likely a response to declining airport tax revenues, risks making Ghana one of the most expensive aviation hubs in the region. Concerns have also been raised about compliance with an ECOWAS directive urging member states to reduce air transport taxes by 25 per cent to improve regional connectivity.

The increase coincides with airlines already adjusting fares upward due to rising aviation fuel costs, driven in part by geopolitical tensions in the Middle East. According to the Board of Airline Representatives in Ghana, the country could move from ninth to third among African nations with the highest airport charges if the levy is fully implemented, trailing only Gabon and Sierra Leone.

Globally, average airport charges for return trips range between $30 and $34, while Africa’s average is around $68. Ghana’s new levies could push costs above the regional average, raising concerns about affordability and the country’s ability to maintain a competitive edge in international and regional air travel.