Airline Passengers to Pay N300,000 More as Exchange Rate Hits N803/$1
- Flight ticket prices have soared in line with the naira exchange rate, which increased to N803 per United States dollar
- The exchange rate influenced a N300,000 rise in International airline tickets between Monday and Tuesday
- Travel agencies have been advised to close out unfinished ticket sales to avoid a possible rise in ticket prices
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International airlines operating the Nigeria route have increased the price of flight tickets from N776.90 to N803.90 per dollar.
The information was disclosed by the International Air Transport Association (IATA) to stakeholders, according to a Leadership report.
The association said the adjustment is in response to the floating of the naira exchange rate.
Source: UGC
The I&E window had reflected a depreciation to N803.9/$1 on Monday, reaching its weakest level to date, and the airlines currently adopted it.
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Legit.ng earlier reported that the exchange rate between Nigeria’s currency, the naira, and the dollar depreciated to N803 per dollar at the Investor and Export (I&E) window on Friday, July 14, 2023.
The fall is the lowest in history. The exchange rate has fallen since Nigeria began floating the naira and moved above the N800 per dollar threshold for the first time.
However, Travel agencies are advised to close out unfinished ticket sales by Monday to avoid a possible price rise.
Higher exchange rate calls for higher ticket fare
Susan Akporiaye, the National Association of Nigeria Travel Agencies (NANTA) president, said international airline tickets increased by N300,000 between Monday and Tuesday in response to the soaring exchange rate.
She noted that the I&E window determines the ticket price and not IATA. Hence, the ticket fare increases as the exchange rate soars.
She said the fluctuation was expected because leaving the market means change would occur until the market stabilises.
She said:
“The problem still remains that the higher the rate, the higher the price. We have advised our clients to hold on till tomorrow to get their tickets, except it is an emergency.”
Naira appreciates at official market, BDC operators adopt different exchange rate
In related news, Legit.ng reported that the naira is no longer N800 per dollar.
The naira recorded a slight recovery against the US dollar on Monday, July 17, 2023, after falling to its lowest on Friday last week.
Data obtained from FMDQ securities showed that Naira's closing exchange rate against the US dollar was N795.28 on Monday.
This is an improvement of 1.07% or N8.62 compared to the previous rate of N803.90 to a dollar it exchanged on July 14.
Source: Legit.ng
