Local airfares’ baseline increased by 63 per cent, at the weekend, in response to a spike in the price of aviation fuel and attendant cost of operation. The upward adjustment pegged the minimum Economy Class ticket at around N50, 000 for future flights, with ‘today’s flight’ travellers buying the same one-hour, one-way economy tickets at an average of N80, 000 each.
A visit to airlines’ counter at the Lagos airport last Thursday and Friday showed some intending passengers expressing shock at the new rates. Quite a number of them weighed their travel options.
With aviation fuel increasing by over 100 per cent in the last one year, the upswing in base fares has been long in coming. Jet A1, accounts for between 30 to 40 per cent operating cost. It sold for an average of N190/litre a year ago. It now sells for between N420 and N429 per litre at some airports nationwide.
Consequently, the base fare that cost an average of N30, 000 across most commercial airlines has also pushed up to above N50, 000, with operators describing the move as “a commercial decision to survive the harsh economic realities.”
A check at the booking counter, yesterday, showed that Lagos-Abuja one-way economy flight for the day sold for between N62, 350 and N92, 000, depending on airlines, while return tickets sold for between N115, 000 and N170, 000.
Future flight was in the range of N50, 250 to N60, 450 for Economy Class on one-way. Lagos-Kano flights for the day also offered for between N81, 701 and N98, 000 per seat. Lagos-Port Harcourt was sold for N50, 950, while future flight was sold for N55, 751 per traveller.
The upward review comes after the 11 commercial airlines met at the meeting of the Airline Operators of Nigeria [AON] in Lagos last Thursday, where matters of mutual survival were discussed.
The AON had earlier bemoaned the scarcity and spike in the cost of aviation fuel, saying Jet A1, today, cost above N410 in Lagos, N422 in Abuja and Port Harcourt, and N429 in Kano.
“On top of the continuous rise in the fuel price, fuel supply is at best epileptic at several airports, thereby causing delays. Supply nationally is at best unpredictable and several times a day, airlines are standing, waiting for fuel to be supplied at airports across the country,” operators stated in a communiqué. The Chairman of United Nigeria Airline, Dr. Obiora Okonkwo, noted that the industry has witnessed a lot of deleterious inconsistencies in the past one year.
Aviation fuel has risen above N400 a litre. The lowest ticket we sold a year ago was N23, 000, when aviation fuel was N190 and the official rate of naira to a dollar then was N340, but today, if foreign exchange is available, it is N450. When it is not available, the alternative market is N570 to a dollar, yet aviation is 99 per cent denominated in dollars.
A visit to the Murtala Muhammed Airport [MMA1], yesterday, some travellers were seen negotiating with airport taxis for trips to the nearest interstate motor park.
Some of the travel agencies also expressed shock at the hike on most routes. One of the managers, who preferred anonymity, said he was shocked to see the sudden increase in airfares.
By Our Correspondent
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