Return Ticket Now N220,000: Nigerian Airlines Hike Ticket Costs as Jet Fuel Sells for N1,000/Litre

Return Ticket Now N220,000: Nigerian Airlines Hike Ticket Costs as Jet Fuel Sells for N1,000/Litre

  • Experts predict the cost of the domestic airline will increase with the hike in the price of fuel jet
  • Industry operators said fuel jet already accounts for 70% of an airline's operating costs
  • According to data, the cost of one-way tickets and return tickets have now sharply increased

Due to the steep increase in the cost of aviation fuel, also known as Jet A1 and foreign exchange, aviation experts have forecast a sharp rise in domestic airfare in the nation.

According to local aviation operators, Jet A1 now costs N1,000 per litre, accounting for 70% of an airline's operating costs, up from 40% before the global oil crisis.

Jet fuel and airline ticket
Local Aviation experts said Jet A1 now costs N1,000 per litre and accounts for 70% of an airline's operating costs, Photo credit: Anchiy, sharply_done
Source: Getty Images

Recall that Legit.ng reported that the cost of domestic flights in Nigeria may rise from N70,000 to N150,000 and N250,000, depending on the route and flight duration.

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An earlier report has cited that airline operators said Nigeria is mature enough to find alternatives for aviation fuel, also known as JetAI, considering the high cost of imports.

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Tickets now costlier

The websites of local airlines in Nigeria reveal that depending on the buying time, one-way tickets now range from N95,000 to N110,000 and return tickets from N150,000 to N220,000.

Daisi Olotu, the former national financial secretary of the National Association of Nigerian Travel Agencies (NANTA), however, stated in an interview with LEADERSHIP that the cost of Jet A1 would increase from their current level.

He claims that the passengers will suffer because they will have to pay more to get to their various locations.

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However, he charged that regional airlines had arbitrarily raised ticket prices in response to the Jet A1 issue.

“Airlines are increasing fares the way they like, everyone is doing what they like. Even petrol pump prices have gone up and oil marketers are doing what they like because foreign exchange prices are always going up.
“If the government refuses to find solutions to rising foreign exchange, prices of commodities including airfare will continue to soar because Jet A1 will continue to go up, PMS price will continue to go up and things in the local market will go up.

He added that due to widespread instability that has made travelling by road increasingly difficult, air travellers have no choice but to fly.

The chief executive officer of Belujane Konzult, Chris Aligbe, also said that the cost of Jet A1 will increase airfare because the price will be passed on to the travellers.

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According to Aligbe, Jet A1 is the single most significant expense for operating an airline, hence the cost will have a significant negative influence on those expenses.

"No More N6.5 Miliion:" Nigerians Traveling to US, UK, Other Countries Fight For N16 Million Ticket

A new report has revealed how Nigerians travelling to the US, the United Kingdom and other countries pay a lump sum to get pricey tickets on the same aircraft, Legit.ng reported.

The report said that a business class ticket to the US from Abuja on Ethiopian Airline sells for as much as N15.6 million. In contrast, passengers in economy class on the same aircraft pay about N1.2 million.

The demand for the N15.6 million ticket is reportedly high but short on supply.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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