Nigerians to Pay More For Air Travel as Aviation Fuel Increases From N190 to N400 per litre

Nigerians to Pay More For Air Travel as Aviation Fuel Increases From N190 to N400 per litre

  • Airlines have warned Nigerians that flying is set to become more expensive due to rising aviation fuel costs
  • Some airlines charged as much as N100,000 for a flight from Lagos to other areas of the country during the Christmas holidays
  • Because of increased incidences of insecurity, more Nigerians are flying, with over 3 million passengers expected in 2021

An increase in airfare for domestic travel may be inevitable due to a 200 per cent increase in Jet A1 from N190 to N400, scarcity of foreign exchange, sunset operation at airports, among others.

The Chief Executive Officer (CEO) of United Nigeria Airline, Dr. Obiora Okonkwo, sends the warning on Wednesday, 8 February 2022 as his company mark its year anniversary.

According to him the only way the increase can be averted is if the Federal Government comes to the aid of airlines.

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Nigerians to pay more for air travel following an increase in cost of aviation fuel
Passengers at an Airport Credit: FAAN
Source: Getty Images

ThisDay Newspaper reports Okonkwo complained that domestic airlines are operating in a difficult environment especially in sunset operations.

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He noted at most airports flights can’t land at night because the cost of operations is stifling growth.

In his words:

“We are operating in a difficult operational environment as the industry has witnessed a lot of inconsistencies. The first ever flight we operated, we paid N190 for the first litre of aviation fuel and as at today, aviation fuel is N400 per litre. The base price we sold tickets when we started was N23, 000 when aviation fuel was N190.
"The first foreign exchange transaction we did when we started was N340 but now, when it is available, it is N450 but when it is not available, the alternative black market cost is N570.

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"It might surprise you to know that despite such an increase, today, because of the market situation, you still can buy your ticket at N20, 000 or N21, 000."

Domestic airlines airlifted 12 million passengers

Meanwhile, the Nigerian Civil Aviation Authority (NCAA) has revealed that in 2021 over 12 million passengers were airlifted by airlines.

According to NCAA, Air Peace, which is the largest airline in terms of fleet size, operated the most flights with 17,861 followed by Ibom Air with 9,551 flights while Arik Air followed closely with 9,024 flights in the year under review.

Max Air operated 8,607 flights; Dana did 8,183 flights; Aero Contractors, 6,973; United Airlines, 6,408; Azman Air, 3,921; Overland, 2,917 and Green Africa, which came on board in October last year did 1,092 flights.

Lagos to Abuja one way ticket now goes for N60,000

Legit.ng had earlier reported how the cost of travelling by air within the country skyrocketed as of October amid an increase in the number of passengers.

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Between January to June 2021, data from the National Bureau of Statistics show over 18 Nigerian airports recorded 5.27 million domestic passengers arrival and departure traffic.

Nigeria currently has at least 31 active airports, Lagos, Abuja, and Port Harcourt record the highest passengers traffic.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.