How one-hour fare rose by 400% in 22 months

• S’East, S’ South mostly affected

Nigerians, accustomed to a certain range of airfare prices, are now grappling with the shock of exorbitant costs for domestic flights. The price of air tickets, especially for routes from Lagos and Abuja to other parts of Nigeria, has witnessed an alarming 100% increase in the past few weeks.

In recent times, the skies above Nigeria seem to be soaring to new altitudes, not just in terms of flights but also in the cost of air travel.

Passengers are feeling the pinch in their pockets as air ticket prices hit an all-time high, leaving many to wonder about the factors driving this upward trend.

While operators appear constrained, aviation experts emphasize the need for proactive solutions to address the challenges and alleviate the burden on travellers.

One-way tickets, once relatively affordable, now command prices exceeding ₦100,000, leaving travelers in disbelief and discontent.

While many have likened the high fares exploitative, few others have made a case for the airlines coupled with the principle of demand outstripping supply, making carriers make a kill; on the routes to both the South East and South-South of Nigeria.

In 2021 and 2022, fares from Lagos to Abuja will be approximately one which cost between N25,000 and N30,000. But as of today one one-way ticket on the same route which is popular amongst Nigerian travelers now goes as high as N100,000 and N120,000 depending on the time of purchase. This is between 300 and 400% increase in the price of air tickets in less than two years.

This festive season, particularly the month of December, sees a significant spike in travel demand. As families plan reunions and vacationers seek holiday destinations, the increased demand naturally influences ticket pricing.

Airlines, aware of the heightened demand, adjusted their fares to N170,000 and N250,000 more to high-demand routes like Owerri, Enugu, Anambra, Port-Harcourt, Benin, Calabar, and Uyo to maximize profits during this peak period.

Experts however are of the view that ticket prices on many routes will remain the way they are even after the yuletide because of the devaluation of the Naira, high cost of operations, and inflation which have made the carriers raise airfares in four months by 100%.

The Managing Director of ValueJet, Captain Omololu Majekodunmi looked back with great nostalgia when fares he said were affordable, stressing that even at the cost of what it is today, airlines may not be charging the appropriate fares because of the weakness of the Naira when it comes to the exchange rate.

He disclosed that the Naira to Dollar exchange was N126/$1 when tickets sold for N25,000 a few years back. The Naira exchanges at about N1000 to $1 at the parallel market.

He however stated that the economic situation has restrained the airlines from charging the right fares.

Secretary, of Aviation Round Table (ART), Mr. Olumide Ohunayo said he noticed that fares have increased by 300%, stressing that it is a reflection of the rate of exchange since the floating of the Naira which made the products needed in aviation to be expensive.

“Look at aviation fuel price, most times, it has crossed the N1000 per litre price. Aviation fuel is a major cost in aviation and because of the hike in jet fuel occasioned by Forex scarcity has badly affected ticket pricing. Again, the leasing of aircraft during this season is more than thrice the cost it would have been without the season. I flew to Owerri last year on a wet-lease aircraft and I checked on the internet that the same ticket to Owerri on economy flight is N200,000. You can see that the capacity is not there.”

“Some of them could not lease aircraft like they did last year to augment the seasonal flights and the expected crowd. The high insecurity in the East of Nigeria has discouraged people from travelling by road as people will pay the high fares than be kidnapped and expect to pay N20 million for ransom. This increase is strictly for this season and for South-South and South-East. Fares to Abuja and other northern parts are somehow stable”.

In a bid to address the challenges, The Managing Director of Aero Contractors, Capt. Ado Sanusi proposed increased capacity and canvassed for additional airlines to join the existing operators.

But he observed that the new regulation by the NCAA, which limited start-up airlines to a minimum of six aircraft may further compound the present challenge and allow for more exploitations by the existing carriers as the yuletide draws nearer.

He said: “I believe that there are some exploitative prices. I believe so, especially on the monopoly routes. The Eastern routes are somehow monopolised and come with exploitative prices.

“It’s the capacity. If we have more airlines coming into the country and the NCAA allows more airlines to fly, then it will bring the price down. The more airlines we have flying, the more competitive it becomes and the more the prices will go down, but since we make regulations that are so hostile to start-up airlines, then, the prices will always go up.”

Wole Shadare