See why Airline Operators are warning of new airfares

• Airline operators have warned that domestic ticket prices will continue to rise due to multiple taxation
• The airline operators are blaming the depreciation of the naira and other factors for the change in ticket prices
• Currently, Nigerian travellers are paying high for return tickets from Lagos to Abuja for at least N250,000

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Airline operators in Nigeria(AON) have warned Nigerian travellers to brace for yet another increase in the price of local airline tickets across the country.

This was disclosed by Obiora Okonkwo the spokesman of AON, citing multiple taxation and exchange rates.

Nigerians to pay more to travel by air, airline operators warn Photo credit: NCCA
Source: Facebook

According to Okonkwo, who is also the chairman of United Nigeria Airlines, unless the challenges are addressed, the price of local airline tickets will continue to rise.

Why airline ticket will rise

Leadership reports that Okonkwo, argued that airlines operating in Nigeria are overburdened by multiple taxation, saying the forex regime of about N1,605 to one dollar.

He also stated that operators are forced to buy spares and fix their aircraft in dollars, even without increases in the cost of such spares abroad.

His words:

"Unless the government recognizes the critical role of aviation and invests appropriately in the sector—by creating a supportive environment with access to low-interest capital and reducing burdensome charges and taxes—ticket prices will continue to rise. "Following our recent trip to South Africa for an IATA conference, it’s clear that Nigeria still has the highest aviation service costs. Local airlines face higher expenses compared to their counterparts in the Western world, leaving us as the primary victims of these disparities

On the taxation challenges, he said that for every ticket that airlines sell there are about 20 to 22 deductions.

Okonkwo added:

Some issues are even repetitive. We’ve been raising concerns, but no one seems interested in understanding or addressing them. "We are deeply worried, and if prompt action is not taken, the problems facing the sector will continue to negatively impact the country."

One-way tickets sell for over N100,000

Earlier, Legit.ng reported that travellers from Lagos to Abuja, Port Harcourt, Kaduna, Owerri, and Kano are now choosing to take the road instead of flying due to the ongoing increase in airfares.

Using data from multiple domestic airlines, BusinessDay calculated the average price of a one-way ticket to any destination, and the results showed an increase of nearly N150,000 in only a single year.

The average cost of a one-way travel from Lagos to Abuja is currently N143,000, up from N51,000 sold the previous year, representing a 180.4% price rise.

Source: Legit.ng