Soaring Air Fare Threatens In-country Connectivity.

Currently, in Nigeria, in-country connectivity is threatened by skyrocketing airfares occasioned by the floating of the naira and an increased price of aviation fuel, also known as Jet A1.

The rising cost of prices of air tickets also affected local travel as it has led to skyrocketed airfare, thereby making it increasingly difficult for Nigerians to travel, especially when compared to neighbouring countries such as Benin and Ghana, where airfares are notably cheaper.

These factors have made air travel above the reach of the middle class, thereby making it solely for the rich in society.

The rising costs, coupled with economic uncertainties, have left many passengers in a state of dismay. And with the increasing insecurity, such as kidnapping for ransom, banditry, communal clashes, and terrorism, have made the other mode of transportation unsecured for Nigerians to explore.

To this end, Nigerians have relied heavily on air transportation as the only safest means of intra-country connection in the last few years without security breaches.

But, the high airfare is currently threatening connectivity and the aviation sector, being the driver of the economy, would undoubtedly affect the nation‘s economic growth if not addressed.

For instance, visiting Air Peace, Ibom Air, Dana Air, and United Airlines websites shows that passengers need at least N150,000 to purchase a return ticket to their preferred destinations.

The busy routes of Sokoto -Abuja, Sokoto-Lagos, Kaduna – Lagos, Kaduna-Abuja, Yola- Abuja, Abuja -Yola, Birin- Kebbi -Abuja, Birin-Kebbi -Lagos, among others, were fully booked. In contrast, others that are available are astronomically high.

It was also gathered that crisis-ridden states, especially northern parts of the country experiencing banditry and kidnapping, have astronomical airfares.

On Air Peace, Kano to Lagos ranges between N78,200 to N123, 900 and Maiduguri to Abuja also the same price.

On Arik Air, Lagos to Sokoto is fully booked for Thursday, July 27, 2023, while Sokoto to Lagos goes for N144,000 Abuja to Sokoto economy seat goes for N93,000, while business class seat goes for N123,000.

On the same airline, Jos to Lagos on Saturday, July 29 2023, goes for N123,000, return ticket Abuja to Lagos for N164,000, while business class for N250,000.

On Ibom Air, Lagos to Uyo goes for N216,000 on economy seat while Port Harcourt to Abuja goes for N120,000 on Monday, July 31, 2023. Return ticket for Lagos to Enugu stands at N184,000 on Ibom Air on July 31, 2023.

Speaking on the increase in airfares, the spokesman of Airline Operators of Nigeria (AON) and chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, stated recently that all local operators are losing tremendous money due to the current economic situation.

According to him, the local airlines are offering patriotic service to air passengers in the country.

He said, “Obviously, the rise in fares to N100,000 for one hour flight is inevitable. I can tell you that in the last three months, all the airline operators have been losing a lot of money. There is too much stress on the operational fronts for them to break even.”

“Even if aviation fuel is made available, there must be a review to reflect the minimal operational cost. We are offering patriotic services to the nation and understand the essential part of it. We are part of this economic development process in Nigeria, but it is coming at a huge sacrifice.”

The spokesperson for foreign airlines operating in Nigeria, Kingsley Nwokoma, expressed concern over the escalating dollar rates and the unresolved issue of trapped funds.

Nwokoma said these factors had led to a significant rise in airfares and suggested that passengers might have to explore alternative modes of transportation if feasible.

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He said airlines had continued to closely monitor the situation and hoped for an amicable resolution from the new government, as failure to rectify the case could result in more airlines pulling out of Nigeria.

Nwokoma said, “I think passengers have to look for alternative means to travel if they have to because the dollar rate has increased, and even the airlines have also increased their dollar rates.

We all know that the issue of trapped funds is still here, it is almost $1bn, and that has not been resolved. Airlines are still watching and looking at the new government, hoping that something will happen; if not, more airlines might leave the country.”

Nwokoma explained that foreign airlines sold tickets at peak prices due to unfavourable economic conditions. He stated this was a direct consequence of the Nigerian government’s pending obligation to pay off the trapped funds owed to international carriers. He added that high ticket prices would persist until the government addressed this issue and achieved stability in the dollar rate.

He said, “I say it all the time that airlines are selling at the highest fare, and there is nothing they can do until the government is ready to sit down and pay off their trapped funds. And hopefully, if we stabilise the dollar, things might get better. These are the only two factors that can make the fares better than we have now.”

The president Aircraft Owners and Pilots Association of Nigeria (AOPAN), Alexander Nwuba, said the ticket price increases due to increased demand for flight seats.

Nwuba had disclosed in an earlier chat that selling tickets cheaply when there is an increase in demand will amount to a loss of revenue for airlines.

“The cause of the increase in ticket price should be evident because everything is priced in dollars that reflect the expected value of money later in the year.

“Also, when there is high demand for aeroplanes’ seats and aeroplanes’ seats are considered a perishable item just like hotel rooms, the value is lost once the night passes. Tickets sold cheaply during festivities are a loss of revenue to the airline that makes most of its money during peak season,“ he said.

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