FlyNamibia cites fuel costs amid Nekundi threats

FlyNamibia has defended its ticket pricing on the Ondangwa route, pointing to rising fuel costs, limited supplier competition and weak demand as pressure mounts from government to slash domestic airfares.

The privately owned airline’s explanation comes days after works and transport minister Veikko Nekundi issued a stern warning to local airlines, giving them six months to cut ticket prices or face possible regulatory intervention.

In a statement released yesterday, FlyNamibia said airfares are primarily driven by supply and demand, arguing that increased passenger volumes would help bring prices down over time.

The airline revealed it has been engaging government to support increased seat uptake as part of efforts to ease fares.

However, it stressed that about 67% of its operating costs are beyond its control, with the airline effectively acting as a “price taker” on key inputs.

Fuel remains the biggest pressure point. FlyNamibia said both Eros and Ondangwa airports rely on a single fuel supplier, creating a monopoly with no competitive pricing. Recent spikes in global fuel prices – linked in part to geopolitical tensions in the Middle East – have further driven up operational costs.

The airline also noted that ticket prices include multiple levies, taxes and regulatory charges, all contributing to the final cost borne by passengers.

Collaborative effort needed

Nekundi’s ultimatum follows growing public concern over the cost of domestic flights, particularly on key routes such as Windhoek–Ondangwa. He warned that failure by airlines to act within six months could trigger government intervention to regulate pricing. Speaking at the official opening of Aviation Week Africa 2026 in Windhoek, Nekundi criticised the high cost of Fly Namibia's local flights, citing a recent example where a one-way ticket to Ondangwa exceeded N$9 000.

He said domestic air travel should not cost more than regional routes, noting that flights to destinations such as Cape Town are often considerably cheaper.

FlyNamibia maintained that it remains committed to making air travel more affordable but cautioned that structural cost challenges must be addressed collaboratively.

The airline highlighted that it operates without any government subsidy, relying entirely on internal funding while contributing to the fiscus through taxes and fees. It employs more than 500 Namibians and continues to invest in training pilots, engineers and graduates.

It reiterated its willingness to work with government and stakeholders to stimulate demand and tackle cost pressures, arguing that coordinated action could ultimately improve accessibility to air travel in Namibia.