• Thursday, December 19, 2024
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BusinessDay

Domestic airfares soar 218% as Christmas closes in

Airlines cancel, delay flights as unions shut entrances over strike action

Murtala Muhammed International Airport

… Diaspora Nigerians leverage weak naira to fly home

Airfares on domestic routes have surged by 218 percent in six months, reflecting the combined impact of high operational costs and heightened demand for travels.

As a result of the high cost of airfares, several Nigerians have been forced to cancel their Christmas travels, with some taking to road travels to save costs.

According to the National Bureau of Statistics (NBS), the average cost of airfares in commonly-flown routes such as Lagos-Abuja stood at N89,888 in June, 2024. In December, however, the cost has jumped to N285,000, indicating a 218 percent increase over a six-month period.

A major airline listed a one-way economy ticket for the Abuja-Owerri route on December 20, 2024, at N143, 000, but this later changed to ₦285,800.

The Abuja-Port Harcourt route has also witnessed steep increases, with a major airline charging ₦285,800 for an economy ticket for a December 20 trip.

BusinessDay found that some airlines charged N114, 000 to N220, 000 for the Abuja-Lagos route for a December 20 trip, but this is likely to exceed N285,000 in the coming days, according to industry players.

Some airlines priced a one-way flight from Abuja to Port Harcourt at ₦237,714 on a December 20 trip, with others charging between N190,095 and N210,000 for trips on December 17 to 19, 2024.

Impact on Passengers

The sharp increases in ticket prices have left passengers grappling with the high cost of air travel, especially as the holiday season intensifies demand. Rising operational expenses and insecurity in some regions have contributed to the skyrocketing fares, making domestic air travel a luxury for many Nigerians.

The surge in airfares also coincides with the holiday season, a time of high demand for domestic flights, as many Nigerians prepare to travel for Christmas and New Year celebrations. This price hike is likely to add significant financial strain for passengers planning to travel at the end of the year.

Mabel Wuku, a civil servant in Abuja, said: “My son is getting married this weekend in Kano. Normally, I’d take a bus for N12,000. But because of the road situation and insecurity problem, I spent ₦95,000 on a one-way flight to Kano. That’s more than half my monthly salary,” she said.

Ezenwa Joshua, a mother of three, said: “I can’t afford this, and I can’t travel on Nigerian roads with my children to such a far destination. I can’t pay ransom to a kidnapper.”

Joseph Egbe, another frustrated traveler, criticised the government for failing to address the affordability of air travel, emphasising its importance for safety and efficiency.

“The government needs to do something about it because air travel is safer and faster. In an hour, you get to your destination, but now, the high airfare is discouraging people from flying,” he said.

Read also: Reduced fleet spikes domestic airfares for Christmas

Exchange Rate Effect

Commenting on the cost of airfares, Festus Keyamo, minister of aviation and aerospace development, said the exchange rate impacts every aspect of aviation, including basic maintenance such as changing a tyre bolt.

Keyamo stated that to reduce ticket prices, the government will help domestic airlines acquire aircraft at a reduced rate.

“What we are therefore doing is to ensure that we expose them to the markets across the world where they can assess aircraft on very good terms. This will impact on the prices of tickets and their cost of operation,” he said.

Diaspora Nigerians leverage weaker naira

Meanwhile diaspora Nigerians are leveraging weaker naira to fly into Nigeria for Christmas, as flights from Europe, London and the United States remain fully booked.

Some airlines have also increased capacity to accommodate the influx of air passengers this Christmas.

Delta Air Lines has started daily nonstop flights on its New York JFK – Lagos route. This began in December 2024 and will continue till February 2025.

During this period, Delta transitioned from the Airbus A330-200, which accommodated 223 passengers, to the more spacious Airbus A330-900neo, capable of carrying 281 passengers.

Mary Gbobaniyi, Delta’s head of sales for West Africa, said: “This is exciting. Adding more flights to the Nigerian market could not have been better timed. Increased capacity and a larger aircraft mean more options and an elevated experience for our customers.”

Also, United Airlines increased its service between Lagos and Washington D.C., from three times weekly to daily flights, between December 4, 2024, and February 14, 2025. This reflects a 133 percent year-over-year increase in seat numbers for this period.

This will be the first time United’s service between Lagos and Washington D.C. will operate daily and the flight remains the only night-time departure from Lagos to the U.S.

“Flights arrive Nigeria from Europe, London and America full to the brim this December period as more Nigerians come home for different reasons. December has the highest weddings as a lot of people keep their events till December so that their family members will attend,” Susan Akporaiye, managing director and CEO, Topaz Travels and Tours, said.

Akporaiye, former president of NANTA, told BusinessDay that the largest concentration of Nigerians all over the world is London, USA and Europe, noting that even though the Nigerian population in Canada is also growing, the numbers don’t match up to that of London and the United States.

She said this explains why flights coming from Europe and London are fully booked this period.

She however said the current exchange rate has made some airlines restrict Nigerian travel agents from issuing tickets in naira.

“For previous years when we experienced high traffic, sales for Nigerian travel agencies were very high. Sadly for this year, even though the flights are fully booked, the tickets are not sold in Nigeria but outside the country.

“Unlike before, it was cheaper to buy tickets from Nigeria. There is still high traffic into Nigeria, but it does not translate to business for us travel agents because of the rate of exchange that is very high,” Akporaiye said.

A one way economy class ticket from Heathrow London airport to Lagos, which costs between N800,000 to N1.3 million about eight months ago now costs an average of N2.65 million this period on Egypt Air, N3 million on RwandAir, N3.25 million on Turkish Airlines, N3.5 million on Emirates, KLM and Air France, N3.7 million on Lufthansa, and N3.9 million on Qatar Airways.

For British Airways and Virgin Atlantic that operate direct flights from London to Lagos, tickets for these airlines cost about N4.2 million and N4.6 million respectively.

Yinka Folami, chief executive officer of Travel and Logistics Centre Ltd and current NANTA president, said Nigerians come from every part of the world that they live each December as they always have this attachment to home.

“This is a high season for airlines and that’s why you find that tickets are much more expensive than they would ordinarily be.”

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