The surge in airfares to local destinations in Nigeria has led to a sharp decline in the number of passengers arriving at and departing from airport terminals across the country.
Observations made at three of Nigeria’s busiest terminals – the local airport terminal in Abuja, the General Aviation Terminal (GAT) in Lagos, and Murtala Muhammed Airport, Lagos (MMA2) – revealed significantly reduced passenger traffic. Airport employees attributed this decline to the increased cost of air travel.
According to reports by BusinessDay, aircraft fuel currently constitutes approximately 45% of operating costs for airlines, followed by labor (17%), aircraft rent and ownership (8.5%), non-aircraft rents and ownership (7%), professional services (4.5%), landing fees (2%), food and beverage (1.5%), maintenance materials (13%), and transport-related expenses (1.5%).
The report further disclosed that due to the current exchange rate and soaring aviation fuel prices, airlines are operating Boeing 737 aircraft at over four times the usual cost. This cost burden necessitates an increase in ticket prices.
Ticket prices for major airlines have witnessed a significant surge in recent months. For instance, a one-way economy class ticket from Lagos to Abuja, previously priced at N55,000, now ranges between N100,000 and N150,000 on Air Peace, or N90,000 to N160,000 on United Nigerian Airlines. Dana Air offers tickets ranging from N70,000 to N130,000, while Ibom Air prices tickets at N170,000 to N200,000.
Similarly, a one-way economy class ticket from Lagos to Port Harcourt, previously around N55,000, now costs between N105,000 and N160,000 on Air Peace, and between N85,000 and N100,000 on United Nigeria Airlines. Dana Air offers tickets ranging from N65,000 to N125,000, while Ibom Air and Arik Air price tickets between N96,000 and N130,000, and N86,000 and N170,000, respectively.
Stakeholders in the aviation industry have voiced concerns over the escalating costs. Osita Okonkwo, Chief Operating Officer of United Nigeria Airlines, highlighted the challenges faced by airlines, emphasizing the impact of increased aviation fuel prices and foreign exchange rates on operational costs. Ndukwe Ginika Ogechi, CEO of Geena Travels And Tours Ltd, echoed the sentiment, noting the dwindling passenger turnout at local destinations due to the prohibitive cost of tickets.
As airlines grapple with soaring operational expenses, passengers face the harsh reality of inflated ticket prices, raising questions about the sustainability of the aviation sector in Nigeria.
