Revealed: Local airline operators give reasons for hike in airfares

• Airline operators in Nigeria have said inflation and high foreign exchange is the reason for the hike in airfares
• The COO of United Nigeria Airlines, Obiora Okonkwo, said that high inflation is also one of the reasons for high airfares
• He disclosed that many airlines have made concessions, but passengers still shun traveling by air

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Domestic airlines have blamed the increasing airfares on foreign exchange volatility and surging inflation in Nigeria,

Obiora Okonkwo, the Chief Operating Officer of United Airlines, disclosed that the country's current economic challenges were affecting the aviation sector.

Domestic airlines blame high FX and inflation for high airfares Credit: Novartis
Source: Getty Images

Operators blame the stagnant economy

Okonkwo said the decision by the airlines to hike airfares was because the economy has remained stagnant and not growing fast enough. 

He said that many people have abandoned air travel, stating that there is a limit to which airlines can hike fares to reflect their costs.

The United Nigeria Airlines boss disclosed that if airlines charge the actual cost, it will stop people from traveling by air.

Punch reports that Okonkwo said that activities are slowing down despite people getting fares below N100,000. He said only a few are sold above N100,000 and that the minimum ticket should be about N150,000.

He said:

“Activities are slowing down. Although people are still getting fares below N100,000, which is not sustainable. A few tickets are sold above that, whereas the minimum should be N150,000. We are trying to balance it.”

Air passengers have decried the increasing rate of airfares in Nigeria caused by touts and racketeers.

The development is despite passengers paying as high as N250,000 for a one-hour flight from Lagos to Abuja.

Stakeholders blame racketeering for fare increases

Aviation stakeholders have blamed the problem on ticket racketeers and the reduction in the fleet of local airlines operating in the country, leading to a hike in ticket prices and racketeering among airline staffers.

Findings show that the airline fleet reduction was caused by an increase in the number of grounded aircraft owned by different local airlines due to exchange rate volatility and Dana Air’s suspension by the Nigerian Civil Aviation Authority (NCAA).

Aviation experts say the number of air passengers has remained the same, if not more, in the last year, while airline seats have decreased due to industry issues.

Leadership reports that the development has shrunk the number of serviceable aircraft in Nigeria, leading to ticket racketeering as fewer seats become available for thousands of air passengers nationwide.

Airlines hike Abuja route airfare

According to reports, the Lagos-Abuja route has witnessed more passenger traffic than other routes, with airlines charging as high as N250,000 for a 45-minute, one-way economy flight.

About 13 domestic airliners operated about 91 aircraft last year, but the number has now halved due to regulators' suspensions and maintenance checks abroad, putting pressure on the few available aircraft.

Fewer aircraft are now available for passengers 

Checks show that the airlines still in operation in Nigeria’s airports include Aero Contractor, Air Peace, Arik Air, Azman, Dana Air, Green Africa, Ibom Air, Max Air, NG Eagle, Overland, Rano Air, United Nigeria Airline, and Valuejet.

However, with six aircraft, Dana Air was grounded by the NCAA on the orders of the Aviation Minister, Festus Keyamo, after its plane overshot the runway.

Aviation expert Adewale Ogunleye blamed the situation on the attitude of aviation regulators. 

Air Peace gets strong rival as Ibom Air acquires new aircraft

Legit.n earlier reported that the state-owned airline, Ibom Air, is set to acquire an additional Airbus A220-300 as part of its strategic plans to boost its capacity and meet the growing demand for its services.

In October 2022, Ibom Air ordered 10 Airbus A220-300 aircraft, the first of which was delivered in November last year.

With the rising demand for its services outgrowing its delivery schedule, the company acquired the A220 from Carlyle Aviation, a famous aircraft lessor and a key player in the global aviation industry.

Source: Legit.ng