NAHCO Grows H1 Profit Despite 25 Per Cent Rise in Operating Costs

The Nigerian Aviation Handling Company (NAHCO) grows H1 profit despite 25 per cent rise in operating costs, posting a 22 per cent increase in profit after tax to N10.85 billion in the first half of 2026, even as inflation continued to push up the cost of running its operations.

NAHCO reported revenue of N35.36 billion for the six months ended 30 June 2026, compared with N32.33 billion in the corresponding period of 2025. However, the company’s operating costs rose by about 25 per cent, reflecting persistent inflationary pressures, higher personnel expenses and increased operating costs across the aviation industry.

Despite the higher cost base, NAHCO increased profit before tax to N14.37 billion, while profit after tax rose to N10.85 billion, indicating that revenue growth and improved financial management more than compensated for the increase in expenses.

The results suggest that NAHCO continued to benefit from stronger demand for ground handling, cargo logistics and other aviation support services during the period.

While operating expenses increased significantly, the company’s revenue growth helped absorb much of the additional cost burden. Lower finance costs also supported earnings, reducing the impact that rising operating expenses would otherwise have had on the bottom line.

For investors, the numbers point to a business that remains profitable despite a difficult operating environment. However, they also raise questions about how long earnings can continue to grow if operating costs keep rising faster than inflation eases.

Although NAHCO delivered another profitable reporting period, sustaining that momentum may depend less on revenue growth and more on management’s ability to improve operating efficiency.

Nigeria’s aviation sector continues to contend with inflation, elevated energy prices, foreign exchange volatility and rising labour costs. These factors are increasing the cost of airport operations and putting pressure on margins across the industry.

If these pressures persist, NAHCO’s ability to manage costs while maintaining service quality could become a key determinant of its financial performance in the second half of 2026.