Passengers Groan As Domestic Carriers Hike Airfares By 200%

Fares in the domestic sector of air travel have risen by over 200 per cent in the last one year.

Ticket prices for travel on major routes – Lagos and Abuja – which sold for between N35,000 and N50,000 last year are on offer for between N80,000, and N96,000.

Ticket prices on the Lagos and Port Harcourt rotation, which hovered in the neighbourhoods of between N35,000 and N40,000 are selling for between N88, 000 and N90, 000.

Experts said ticket prices on the Lagos and Kano route, which sold for between N45,000 and N60,000 last year are selling for between N90,000 and N150,000.

Industry watchers attribute depleting aircraft seats, increasing operating costs and astronomical rise in the price of aviation fuel as major reasons for air fare rise.

In the last one year, the price of aviation fuel increased from N190 to its N900 litre.

In February, this year, the umbrella body of local carriers – Airline Operators of Nigeria (AON) said carriers were raising airfares to a minimum charge of N50,000.

The body, according to its President, Dr. Abdulmunaf Sarina, cited high cost of jet fuel, foreign exchange scarcity, and increasing ground handling charges as well as high cost of buying and importing aircraft spares.

Operators have been complaining about the effect of jet fuel hike on fixing airfares given that aviation fuel constitutes well over 40 percent of airlines’operating costs.

The depleting number of airlines – from over 10 to about eight weak scheduled carriers accounts for the rise in air fares as airlines are now consolidating in their niche markets.

Investigations reveal that the shrinking number of serviceable aircraft from over 60 out of 98 airplanes grounded.

Findings showed that the eight active airlines are operating a cumulative 38.77 per cent fleet capacity.

Air Peace, which is the market leader with a large percentage of the total domestic operation as at last year with over 32 airplanes has less than 20 of it in active services.

Arik Air, which boasts 11 aircraft out of 30 on its fleet before its take-over in 2017, has about five active aircraft.

Azman Air, with eight aircraft, has only three active ones left.

According to Airfleets Aviation platform, Max Air has a total of four active airplanes out of over eight credited to its operations.

The only state-owned airline, Ibom Air, has a total of eight airplanes out of which six are in active service. United Nigeria Airlines, which acquired four aircraft and two are currently active.

The implication of having only 38 planes active out of a total of 98 or 38.77 per cent fleet operating capacity is most telling of the surging passenger traffic. The National Bureau of Statistics (NBS), in April 2022, estimated that 13 million passengers travelled Nigerian airports in 2021.

Speaking in an interview, industry analyst /strategist, Mr Tayo Ojuri said airfares are on the rise for a variety of reasons.

The Managing Direcor of Aglow Aviation Services Limited said the spate insurgent/terrorists attacks have pushed more people out of the road to air travel.

The surge in such fear – stricken travellers – which is a function of more demand for air services – with the limited available seats on the aircraft would naturally push up airfares.

According to him, with the depleting fleet experienced by local carriers, which are constrained by lack of foreign exchange to take their airplanes outside the country for repairs would mean many chasing limited seats onboard.

Besides, he said the astronomical increase in jet fuel price would translate to operators considering cost reflective fares to keep their business afloat.

Speaking in an interview, the Director-General, Nigerian Civil Aviation Authority (NCAA), Capt Musa Nuhu said rising airfares was a function of market forces.

He said though, the regulator was concerned about the development, but would advise local carriers not to charge fares above the approved threshold.

President of the Aviation Safety and Round Table Initiative (ASRTI), Dr Gabriel Olowo, has, however, advised airlines to sell their tickets in line with the fluctuating price of aviation fuel.

Olowo called for increased vigilance of the Nigerian Civil Aviation Authority (NCAA), saying a price increase was better than negotiating safety by cutting corners.

Olowo said: “This is my candid opinion to airlines, given these uncontrollable factors of production in the airline industry sector. Demand will definitely drop but much better than cut corners and plan an accident.

“If fuel is 4,000 litres for a one-hour on jet , Lagos / Abuja for example at N800 per litre, which gives N3,200,000, and a load factor of 100 passengers, this means fuel cost per passenger is N32,000 and this is approximately 30 per cent of total cost. This will translate to a N107,000 tariff for a one way journey.”