No More N140,000: Good News as Air Peace, Dana Air, Others Slash Domestic Airfares

• The cost of domestic flights has declined sharply in the face of rising Jet A1 fuel prices
• The average cost of domestic airlines is now N89,000 compared to the N140,000 in February
• According to aviation analysts, the price decreased due to the current off-peak period

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The cost of domestic flights in Nigeria has drastically decreased, giving customers various options despite the rising Jet A1 fuel prices.

This comes after a sharp decline in passenger volume in the first quarter of 2024.

In February, Major domestic carriers, including Air Peace, Dana Air, and Ibom Air, offered economy travel tickets for most locations for N140,000. This was a significant increase from the average of N89,000.

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But things have changed now that most airlines are trying to draw customers in by cutting their fares dramatically. Daily Sun reported that Dana Air offers economy tickets on its website for as little as N64,800 for people who want to fly from Lagos to Abuja on April 30.

Earlier cost vs recent cost

For most February time slots, Air Peace was charging N143,000 for economy class seats on the Lagos-Abuja route. This price included flights from Abuja to Asaba as well.

The same N143,000 charge applied to those travelling in economy class from Calabar to Lagos, Lagos to Benin, and Lagos to Anambra during that time. ValueJet also charged the same price for economy class tickets on the Lagos-Abuja route.

However, recent data from the airlines' websites indicates a sharp decline in airfare. Currently, economy class tickets on Air Peace are available for N85,000 for travel on April 30th on the Lagos-Abuja route for all time slots.

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The same prices apply for flights from Abuja to Asaba on the same day. Economy class tickets from Calabar to Lagos now cost N100,000, while flights to Benin and Anambra from Lagos have decreased to N85,000 and N100,000, respectively.

Economy class tickets for all specified itineraries leaving from Abuja were priced at N142,500 by United Nigeria Airlines in February. This included travel by air to Bayelsa, Lagos, Sokoto, Enugu, and Anambra.

However, starting April 30th, several destinations have seen a considerable drop in price. For example, there has been a reduction of N42,500 in the cost of a flight from Abuja to Anambra to N100,000. Additionally, passengers flying from Lagos to Kano will prepare to spend N70,000, which is N72,500 less than the February fare.

On the Lagos-Uyo route, Ibom Air also saw a drop in pricing; the current cost is N96,000, down from N150,000 in March.

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On April 30, information was unavailable for more Ibom Air routes connecting Lagos to Calabar and Enugu. Aero Contractors also displayed a drop in pricing for the Lagos-Abuja route. The current fare is N75,000, which is N28,700 less than in March. On April 30, no data was available on Aero Contractors for the Lagos-Kano route.

An economy class ticket on the Lagos-Abuja route cost N118,000 for travellers who chose to use Green Africa last month. Arik Air's March airfares from Lagos to Sokoto and Jos were N244,000 and N142,500, respectively. Meanwhile, those planning to fly to Green Africa on April 30th may now take advantage of a notable price cut, with economy tickets costing N73,000—a N45,000 savings from March rates.

Why price is declining

The number of operating aircraft in the industry had dropped to 43 in January 2024, as some of the aircraft taken out for checks were still in maintenance facilities overseas.

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Daily Sun reported that this could have contributed to the increase in airfare between February and March.

Aviation analyst and principal managing partner at Avaero Capital, Sindy Foster, said the price decreased to the current off-peak period (typically Q1).

During this low-traffic period, airlines strategically adjust fares to attract passengers and cover operational costs, including aircraft maintenance.

“When you are in a low season period such as we are now, airlines try to maximise whatever little revenue they currently get so that they can cover their cost of operation, maintain their aircraft and still operate safely and profitably, even though it is debatable how profitable the aviation industry can possibly be in Nigeria,” she said.

Air Peace unveils connecting flights

Legit.ng reported that Air Peace has now extended its passenger connections offer to London from Abuja, Asaba, Benin, Enugu, Owerri, Warri, and Port Harcourt, following the success of its Lagos-London service.

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This means that travellers from the states on the list can seamlessly travel to Lagos, where they can connect with Air Peace to reach London, and their bags will arrive at Gatwick airport.

Following the announcement, Nigerians expressed enthusiasm, saying that if the service is seamless, Air Peace will have an advantage over other carriers on the route.

Source: Legit.ng