Despite increasing aircrafts, Nigeria worries about increase in airfare

• Nine new aircraft were recently added to the fleet of Nigerian airlines in preparation for growing demand
• Despite this, the development has failed to curb increasing ticket fees for passengers ahead of Christmas
• According to experts, only a stable naira can help to can help airfare to come down in Nigeria

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Ahead of Christmas, customers are being forced to reconsider their alternatives after nine new aircraft that Nigerian airlines recently added to their fleet failed to curb increasing ticket fees.

Across the country, airfares have gone up by more than 200%. Photo Credit: Contributor
Source: Getty Images

Last week, BusinessDay revealed that airlines were bringing in planes to support local routes and satisfy growing demand before the Christmas season.

Air fares have not yet increased as a result of the fleet expansion, as domestic airlines continue to be choked by high operating and maintenance costs, which puts pressure on their long-term viability.

One Embraer 190 aircraft was recently purchased by United Airlines, and four aircraft from Xejet joined scheduled operations. Air Peace increased its operations with two aircraft that just returned from maintenance outside of Nigeria, while Ibom Air brought in two CRJ 900s.

Airfares continues to increase

As Christmas draws near, airfares have increased by more than 200 percent for all of the nation's locations.

Fares for other routes have continued to grow, but routes like Abuja and Lagos, which are served by more airlines, appear to be slightly less expensive, with an average one-way economy class ticket costing N130,000.

The average price of one-way economy class tickets from Lagos to Enugu, Owerri, Port Harcourt, and Asaba by this time last year was N100,000. Today, they range from N170,000 to N350,000.

Some domestic airlines offer one-way economy class tickets from Lagos to regularly visited destinations for between N170,000 and N400,000.

“If you want to make it a prayer point for fares to come down, you should pray for naira to be stable because some of these things are benchmarked against the naira and the cost of aviation. The lower the value of naira, the higher the cost of aviation fuel, and the higher the cost of operations in naira,” Obiora Okonkwo, chairman/CEO, United Nigeria Airlines, said.

Given the operational expenses, Okonkwo emphasized that the current fare paid by customers is still subsidized.

Nigerians react as airline charges in dollars

Legit.ng reported that Nigerian travel agents say Emirates ticket bookings have slowed amid the company’s dollar charges and rigid visa rules by the UAE.

Emirates recently announced that it will resume flight operations in Nigeria on October 1 after two years of suspending services there.

The company’s fare inventories are priced in dollars but are competitive compared to other airlines.

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Source: Legit.ng