Local airfares’ baseline appreciated 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, yesterday, 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 on Thursday, where matters of mutual survival were discussed.
It was learnt that all operators, except one (Green Africa), that operates a unique low-cost model, agreed on the new benchmark and its immediate take-off. Green Africa, as of yesterday, retained between N33,000 to N38,650 on its one-way Economy Class tickets across routes.
A travel agent, Kehinde Akinsiku, affirmed that the carriers took other stakeholders by surprise. Akinsiku said: “It is almost the first time we are seeing a uniform astronomical rise in airfares and without warning whatsoever. I think this is harsh and unfair to the travelling public. With this, travelling has become more elitist, which is bad for business.”
The AON had earlier bemoaned the scarcity and spike in the cost of aviation fuel, saying Jet A1, today, costs 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.
“For our first ever flight (February last year), we paid N190 per litre for aviation fuel, but today (yesterday), 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. So, how will the operators survive these unusual inconsistencies?” Okonkwo queried.
He added that airlines that sell tickets at the old rates were subsiding airfares, which is not sustainable.
“Safety is very critical in aviation business. But, you cannot deal with safety in isolation of efficient operations. It must come with proper financing of operations. The cost of tickets is very important, yet aviation is a chain and the airline operators are at the centre of the chain,” Okonkwo said.
Former Commandant of the Lagos Airport and aviation security consultant, Group Capt. John Ojikutu (rtd.), reckoned that airlines might be excused on the airfare spike, as they are, for once, charging the right fares that are commensurate with economic realities.
Ojikutu recalled that from the 1990s to date, exchange rates had spiked several times without airlines changing ticket fares. He said it was no surprise that the airlines continued to struggle, owing service providers and regulatory agencies’deductions of five per cent Ticket Sales Charge (TSC) and Passenger Services Charge (PSC), just to stay afloat.
When The Guardian visited the Murtala Muhammed Airport (MMA1), yesterday, some travellers were seen negotiating with airport taxis for trips to the nearest interstate motor park.
A passenger, Solomon, who had budgeted N50, 500 for his Lagos-Benin trip, said he had resolved to go by road. He asked: “How can I pay such an amount from Lagos to Benin? How can I pay double of what I used to pay,” h asked as he sauntered away from the booking counter.”
Francisca, another intending traveller, who came with her three-year-old daughter from Accra, also resolved to go by road to Abuja on hearing the new fares. Mother and daughter were to secure tickets on United Nigeria Airline to Abuja for just N46, 000 on Thursday. She took to her heels, as she was asked to pay N86, 500 for the same flight ticket.
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.
“I made a reservation for some people on Air Peace and quoted N27, 500 for a passenger on Thursday, and by Friday morning, all fares had increased to N55,000. And when I checked other airlines, it was a uniform percentage increase, except Green Africa, which had flexible rates for those travelling with hand luggage.
