Finance Analyst Mary Olowo Soyeke, representative of the Chairman of Sabre, West Africa, has outlined a three-pronged strategy to help Nigerian airlines remain financially sustainable despite mounting economic pressures.
Speaking during an interview and presentation at the 29th Annual Conference of the League of Airports and Aviation Correspondents (LAAC) in Ikeja, Lagos, Soyeke urged airline CFOs and financial leaders to embrace diversification, maintain strict financial oversight, and adopt cost-effective fleet acquisition strategies.
Drawing from her experience in airline financial management, she said long-term profitability in aviation depends on more than operational efficiency. She stressed that reinvesting profits into diverse income streams is key to weathering industry volatility.
“There’s not one way to skin a cow or cook a fish. You have to diversify. If you’re profitable for a few years, channel part of that income into other avenues that can yield more returns. Sometimes, those investments should even be outside your core business,” she explained.
She underscored the importance of strong financial oversight, warning that many aviation companies overly focus on profit-and-loss statements while neglecting cash flow and liquidity factors she described as “essential for survival.”
“If you’re cash-flow negative, no investor or CEO will approve major reinvestments, even if your P&L looks good. You must understand the full financial picture to protect the company’s health,” Soyeke said.
On fleet acquisition, she advised new entrants into the Nigerian aviation market to prioritise leasing over outright purchase, citing the heavy capital burden of aircraft ownership in a high-foreign-exchange-cost environment.
“When you lease, you pay a manageable fee for two to three years, and the servicing remains the owner’s responsibility. It’s a smarter move unless you have huge cash reserves,” she noted.
Soyeke further urged government intervention through export credit support to strengthen local carriers. She argued that targeted funding could drastically improve airline capacity, route expansion, and innovation.
“If a major airline like Air Peace received a $300 million grant, it could transform operations and coverage. Government-backed funding is essential for our aviation sector’s growth,” she emphasised.
However, she acknowledged that foreign exchange volatility remains one of the industry’s toughest challenges. Recalling her tenure as CFO three years ago when the naira traded at ₦460 to the dollar, Soyeke highlighted the steep rise to ₦1,550/$ today.
She warned that the resulting increase in leasing costs and other foreign currency-denominated expenses inevitably trickles down to passengers.
“That’s one of the hard realities of our business environment. The cost can’t sit on the company’s balance sheet; it ends up with the consumer,” she concluded.
The conference also featured contributions from renowned economist Dr. Gbenga Olowo, a revered aviation expert who recently celebrated 52 years in the sector. Industry stakeholders deliberated on practical reforms to strengthen Nigeria’s aviation sector amid global economic turbulence, with a common consensus on the need for innovative financing solutions and stronger policy support.
