The persistent rise in airfares to local destinations has resulted in a significant decrease in the volume of passengers arriving at and departing airport terminals nationwide.
It was noted that not many passengers were processed for travel at the three busiest terminals in Nigeria: Murtala Muhammed Airport, Lagos (MMA2), the General Aviation Terminal (GAT) in Lagos, and the local airport terminal in Abuja.
The majority of airport staff expressed dissatisfaction over limited traffic, citing higher airfares as the reason why these airports are usually only packed with arriving travelers.
Approximately 45% of operating costs are currently attributed to aircraft fuel, according to BusinessDay. This is followed by labor (17%), non-aircraft rents and ownership (7%), professional services (4.5%), landing fees (2%), food and beverage (1.5%), maintenance materials (13%), and transport-related (1.5%).
Additionally, it was discovered that because of the present exchange rate and rising costs of aviation fuel—which is currently nearly N1,300 per litre—airlines operate a B737 aircraft for more than four times that period of time.
Additionally, airlines have to increase ticket rates when the naira’s value increases in relation to the dollar.
Ticket Prices By Major Airlines
According to the newspaper, a one-way economy class ticket from Lagos to Abuja, which cost N55,000 a few months ago, is now available on Air Peace for between N100,000 and N150,000, or N90,000 to N160,000 on United Nigerian Airlines.
While it ranges from N70,000 to N130,000 on Dana Air and N170,000 to N200,000 on Ibom Air.
Similarly, a one-way economy class ticket from Lagos to Port Harcourt used to cost roughly N55,000, but now it costs between N105,000 and N160,000 on Air Peace and N85,000 and N100,000 on United Nigeria Airlines.
It also ranges from N65,000 and N125,000 on Dana Air, N96,000 and N130,000 on Ibom Air, and N86,000 and N170,000 on Arik Air.
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Speaking with the news platform, the Chief Operating Officer (COO) of United Nigeria Airlines, Osita Okonkwo, said: “Currently, aviation fuel has increased to N1,300 per litre or even more. Forex is over N1,000 for one dollar. So, if we are leasing aircraft, how do we pay for the aircraft, having paid for spare parts? The minimum cost of airfare should be $100.
“So, I don’t even see how you can fly for less than N150,000, and you will make a profit. Anybody telling you he is making it is not telling you the truth. Once the cash runs out, you will see operators parking their aircraft as some have done already.”
Also, the Chief Executive Officer (CEO) of Geena Travels And Tours Ltd, Ndukwe Ginika Ogechi, said passenger turnout at local destinations has been scant lately due to the cost of tickets.
