Why airlines increased charges by 25% in July 2024

• Nigerian airlines increased their fares by as much as 25% in July to 98,561 for a single trip
• Data from the National Bureau of Statistics (NBS) disclosed that domestic flights rose from N78,775.74 during the period
• The development comes as the Nigerian Airspace Management Agency said it will increase its navigational charges

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

Data from the National Bureau of Statistics (NBS) disclosed that domestic airfares increased by 25% every year to N98,561.74 in July 2024 from N78,775.74

NBS data said in its Transport Fare Watch report for July 2024 that the average fare paid by air travellers for specified routes in a single trip was about N98,561.74 in July this year, a 9.65% increase compared to the previous month.

Data shows that Air Peace and other Nigerian airlines increased fares by 25 per cent Credit: Novatis
Source: Getty Images

FG to increase navigational charges

The NBS said:

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“On a YoY basis, the fare rose by 25.12 per cent from N78,775.74 in July 2023.” 

Legit.ng reports that in July, the Nigerian government indicated its intention to raise tax charges amid complaints by the Airline Operators Association of Nigeria (AON) over multiple taxations.

The report said the Managing Director of the Nigerian Airspace Management Agency (NAMA), Umar Farouk, recently disclosed that the agency would increase its en-route navigational charges from N2,000 to N6,000 and N54,000 per flight.

Also, the NAMA boss disclosed that the airspace agency increased the extension service hours to airlines from N50,000 to N450,000, representing an increase of 800% per extension to enable it to recover operational costs during the extension time.

Transport companies increase fares

Analysts believe that if the charges are implemented, airfares would rise by as much as 800% to recoup their costs.

According to reports, the prices for bus, motorcycle and waterway journeys declined in July 2024.

NBS said: 

“The average fare paid by commuters for bus journeys within the city per drop decreased to 2.18 per cent from N963.58 in June 2024 to N942.61 in July 2024. “On a YoY basis, it declined by 29.46 per cent from N1,336.29 in July 2023. “In another category, the average fare paid by commuters for bus journey intercity per drop was N7,117.17 in July 2024, indicating an increase of 0.35 per cent on an MoM basis compared to N7,092.03 in June 2024”. 

Emirates Airlines crashes ticket fares

Legit.ng earlier reported that Emirates Airlines is luring Nigerian passengers with cheap USD airfares, which has attracted mixed reactions from aviation analysts and passengers.

Findings show that as of Monday, August 26, 2024, all fare inventories on Emirates Airlines’ website were competitive but priced in dollars.

The airline had fixed October 1, 2024, as the date to resume daily flights between Lagos and Dubai, offering more choice and connectivity from the Nigerian city to and from Dubai.

Source: Legit.ng