Local Airlines See A Decline In Passengers As Ticket Costs Rise
Major airlines such as Air Peace, Dana Air, and others have revealed their updated ticket pricing, sending a wave of terror across travelers.
Significant drops in passenger volume have resulted from the announcement at major airport terminals around the country.
Travelers have drastically decreased at the generally busy terminals in Abuja, Lagos' General Aviation Terminal (GAT), and Murtala Muhammed Airport (MMA2), which are well-known for their lively crowds.
Industry sources blamed the spike in airfares for this decline, which has many prospective travelers in disbelief.
The main cause of the increase in ticket rates, according to Business Day reports, is the skyrocketing cost of aviation fuel, which is currently around N1,300 per liter.
In addition, airlines have had to raise their tickets in order to cover growing operating costs as a result of the naira's depreciation versus the dollar.
Aircraft fuel accounts for about 45% of operating expenditures, with labor coming in at 17%, aircraft rent and ownership at 8.5%, and other costs.
Amidst difficult economic conditions, airlines have been compelled to reevaluate their pricing methods due to the financial hardship.
Air Peace and United Airlines are charging between N100,000 and N150,000 for previously inexpensive trips like Lagos to Abuja, which used to only cost N55,000.
Similar price increases have been observed for flights from Lagos to Port Harcourt, where tickets range from N85,000 to N100,000 on United Nigeria Airlines and from N105,000 to N160,000 on Air Peace.
Stakeholders in the industry have expressed worry about the rising expenses.
United Nigeria Airlines' Chief Operating Officer, Osita Okonkwo, discussed the difficulties encountered by airlines.
He underlined how important it is to modify rates to reflect current economic conditions and threatened severe repercussions if excessive pricing continues.
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