Low patronage forces fare adjustment amid airlines’ rising operational costs

 

• Passenger traffic shrinks, carriers lament

 

A sharp reduction in the number of people that travel within the country and the harsh economic reality may have unwillingly forced airlines to adjust fares downward despite the myriad of challenges the carriers are faced with.

Fares which jumped astronomically in July 2023 from N50,000 to between N80,000 and N100,000 for a way trip to Lagos from Abuja or to Lagos to Port-Harcourt have reverted to N65,000 and N70,000.

A market survey by Aviation Metric that went across some airlines’ counters last week shows that there is a remarkable reduction in fares.

Experts who spoke to our reporters said low patronage and low load factor may have compelled the carriers to rethink the situation by ‘adjusting’ fares.

The Managing Director of Aero Contractors, Capt. Ado Sanusi however said this could be possible because of the Valentine’s Day promotional fares airlines have been advertising, stressing that about two seats are usually given out for promotion.

Sanusi however stated that ordinarily, fares should not be more than N70,000 or N75, 000 which he said amounts to between $65 and $70, adding that pricing of a one-way ticket at N135,000 or N140,000 was way too expensive for an hour flight.

“His words, “I think what is happening is that most airlines introduced Valentine’s Day promo which is usually two or three seats. You may need to check next week after Valentine’s to know if it is the same. But in truth, N130,000 and N140, 000 the fares sold a few months ago were expensive. If you look at it, one one-hour trip should not cost more than N75,000.”

Former Managing Director of Aero Contractors, Capt. Dapo Olumide said low load factor may have compelled the airlines to readjust fares rather than fly empty.

He noted that the market determines fares, stressing that not many people are taking to air travel these days because of the tough economic situation.

An official of one of the domestic airlines who spoke with our correspondent said, “The passengers coming to the airport have somehow dropped.”

“People are probably now traveling by road. Those you see at the airport now are big men. So, if the economy is not performing as expected and businessmen are not moving, the airlines will not find the passengers.

“Once the economy begins to jump, business starts to move; then you see movement in our airports. Where 80 to 85 percent of the passengers are doing business, most of them are not seeing any business to do now. I guess what is happening in Abuja right now is more politics than business. So it is the politicians that are moving,” he added.

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.

While fares shot to the rooftop in July last year as a result of scarcity of Forex, high cost of jet fuel, and taxes, many travelers further raised concerns when fares doubled during the Yuletide, leading to an outcry by many Nigerians.

Passengers felt 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.

The Chairman of United Nigeria Airlines, Chief Obiorah Okonkwo who is also the spokesman for Airline Operators of Nigeria (AON) said as fallout of the present economic situation in the country, passenger traffic has shrunk because those who would otherwise spend money on flight tickets to attend events would rather send credit alerts to their hosts who would graciously accept such kind gesture.

His words, “Passenger traffic has shrunk because even those on social engagement like weddings, burials, and other ceremonies may not be inclined to spend money on flight tickets; they would rather send credit alerts to those hosting the events who would appreciate such gestures. So, they pay instead of appearing in person.”

Okonkwo also said the operators’ passion to remain in business “is being eroded” adding that some airlines are gasping for breath while some are already in the intensive care unit.

According to him, “We are making losses on factors that are beyond our control. We are not only faced with the problem of scarcity of dollars; even the aviation ecosystem is feeling the heat. Handling companies have increased the cost of their services, airports have increased their charges and those that service the aircraft have also increased the cost of their services. The monies for these payments are coming from the passengers who are already exhausted financially.”

 

 

 

 

 

 

 

 

 

 

 

 

 

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