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.

• President Commissions 36.5 Million Dollars Hospital In The Tain District
• You Will Not Go Free For Killing An Hard Working MP – Akufo-Addo To MP’s Killer
• I Will Lead You To Victory – Ato Forson Assures NDC Supporters

Visit Our Social Media for More

About Author

hbtvghana

See author's posts