Rating Release

Agusto & Co. hereby assigns a “Bbb-” (long-term) and “A3” (short-term) ratings to United Nigeria Airlines Company Limited, with a stable outlook 

The rating expires on 30 June 2026. 

Agusto & Co. hereby assigns “Bbb-” (long-term) and “A3” (short-term) ratings to United Nigeria Airlines Company Limited (“United Nigeria”, “UNA” or “the Company”). The assigned ratings reflect the Company’s satisfactory profitability and cash flows, supported by strong revenue growth, improved route performance, growing passenger traffic and prepaid ticketing model. The ratings are further upheld by UNA’s adequate liquidity and established relationships with Tier 1 financial institutions, which provide additional funding flexibility. Furthermore, the ratings recognise United Nigeria’s growing domestic and regional route network, expanding fleet capacity and favourable long-term demand fundamentals for air travel in Nigeria. However, these strengths are tempered by UNA’s limited operating track record and the execution risks associated with its rapid fleet and route expansion. The ratings are further constrained by the sharp increase in the Company’s leverage following the debt-funded acquisition of two Boeing 737-800 aircraft, heightened working capital pressure and the timing gap between aircraft acquisition and earnings contribution. The ratings are also moderated by UNA’s exposure to aviation fuel price volatility, foreign exchange risk, aircraft lease and maintenance costs, route execution risk and intense competition on major domestic routes. In addition, the Company’s concentrated family ownership, compact Board structure and potential key person dependency risk weigh on the governance assessment.

United Nigeria is an indigenous commercial airline providing scheduled passenger, cargo and related aviation services across domestic and regional routes. The Company commenced scheduled flight operations in February 2021 and has expanded its local route network to 15 major commercial and underserved destinations, with Lagos and Abuja as principal hubs. UNA commenced regional operations to Accra, Ghana in November 2025 and plans to launch additional African routes, including Monrovia, Banjul/Dakar, Johannesburg and Abidjan in the second half of 2026. United Nigeria currently operates eight aircraft with an aggregate capacity of 798 seats. As part of its medium-term expansion strategy, UNA acquired two Boeing 737-800 aircraft (delivered on 18 June 2026) and plans to expand its fleet to 20 aircraft over the medium term to support route expansion, schedule reliability and long-term operating scale.