After NNPC Petrol Price Increase, Nigerian Airlines Announce Fare Hikes More Routes Affected

• Airlines in Nigeria have increased their fares due to dwindling passenger traffic and fleet reduction
• Data from the Nigeria Civil Aviation Authority (NCAA) and the Federal Airports Authority of Nigeria (FAAN) show a drastic drop in air passengers
• The development comes following the increase in petrol prices, which analysts say may have also impacted aviation fuel

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Following the increase in petrol prices by the Nigerian National Petroleum Company Limited (NNPC), Nigerian airlines have hiked fares on specific routes.

A one-way economy class ticket from Lagos to Abuja on Air Peace, Ibom Air, Green Africa, and ValueJet, which cost between N50,000 to N65,000 in 2023, now costs between N130,000 to N220,000, depending on the airline, day and time of travel.

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Affected routes see an increase in airfares

Additionally, a one-way economy class ticket from Lagos to Enugu on Air Peace and Green Africa has their one-way economy class tickets increased from N60,000 and N140,000 in 2023 to about N500,000 in 2024.

A one-way economy class ticket from Lagos to Owerri rose from N60,000 in 2023 to N150,000 and N600,000 on Green African and Air Peace.

A one-way economy class ticket from Lagos to Kano increased from an average of N75,000 in 2023 to N150,000 to N650,000 on Air Peace, depending on travel date and ticket inventories.

Several passengers have been airlifted by a few aircraft on domestic routes in the last few months. Local airlines struggle with fleet depletion due to high maintenance costs abroad caused by forex scarcity.

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More airlines suffer fleet depletion

Several Nigerian airlines have sent their aircraft abroad for routine maintenance and need help retrieving them due to the escalating cost of foreign exchange.

As Nigerian airlines battle forex scarcity, others have been grounded by the Nigeria Civil Aviation Authority (NCAA) due to their inability to send their aircraft for maintenance.

Reports say the grounding of Dana Air, a low-cost carrier with six aircraft, has impacted the fleet of airlines currently operating domestic routes.

According to BusinessDay, the Nigeria Civil Aviation Authority (NCAA) has forced other airlines to ground their aircraft.

Also, routes previously covered by Dana Air have increased fares.

Airports record low passenger traffic

The Lagos-Abuja route has seen more passengers increase than other routes as airlines jostle for passenger loyalty.

Data by the NCAA show that between January and July 2022, about 9.4 million people travelled by air.

In 2023, the figure reduced to only 8.1 million people travelling by air, showing a 13 decline.

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The NCAA data also showed a slump in non-revenue and revenue travel at Murtala Mohammed International Airport (MMIA) 's domestic wind.

Statistics from the Federal Airports Authority of Nigeria (FAAN) disclosed that between January and December 2022, the MMIA recorded over one million non-revenue and revenue passenger travels.

13 operating airlines are not enough for passengers

In 2023, about 781,894 passengers travelled via the MMIA, representing a 23% decline in passenger traffic.

About 13 domestic airlines operate in Nigeria, including Aero, Air Peace, Azman Air, Arik Air, Dana Air, Green Africa, Ibom Air, Max Air, NG Eagle, Overland, Reno Air, United Airlines, and ValueJet.

Reports say that apart from grounded airlines, about 91 aircraft are on routine maintenance abroad, further straining the few operating aircraft.

Airfares drop as foreign airlines announce new ticket prices

Legit.ng earlier reported that Foreign airlines in Nigeria have started to unblock their low-priced tickets on Nigerian routes following the completion of the payment of about $7 billion backlog by the Central Bank of Nigeria(CBN), including the $700 million reportedly belonging to foreign airlines.

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The apex bank said two weeks ago that it had completed the payment for verified FX claims of about $7 billion in debt, including forex forward contracts among foreign exchange-denominated debts.

The bank said that about $2.4 billion of the $7 billion debt was invalid, stating that the amount could not be verified due to improper documentation.

Source: Legit.ng