Air travellers pay 61% more for tickets in one year
By Jeph Ajobaju, Chief Copy Editor
Average airfare has jumped 61.27 per cent in 12 months, as documented in the “Transport Fare Watch for November 2023” just released by the National Bureau of Statistics (NBS).
“On a year-on-year basis, the fare rose by 61.27% from N3,848.48 in November 2022,” the report explained.
The average fare paid by air travellers for specified routes single journey was N81,334.05 in November 2023, up 3.24 per cent versus October 2023, according to the NBS, adding the fare rose 11.01 per cent from N73,270.27 in November 2022.
Road transport
The average cost of motorcycle taxi (Okada) transportation was N473.13 in November 2023, a 6.74 reduction with N507.30 in October 2023.
The fare hiked 3.07 per cent year-on-year (YoY) on N459.02 in November 2022.
__________________________________________________________________
Related articles:
FAAN says it can’t operate airports 24/7 for now
Airlines still grappling with pandemic losses globally
Restricted operations cost local airlines N4b yearly
__________________________________________________________________
Water transport
Water transport (waterway passenger transportation) cost decreased -3.08 per cent in November from N1,395.68 in October this year, but increased 34.42 per cent YoY from N1,006.33 in November 2022, the NBS said, per The Nation.
The NBS explained Transport Fare Watch for November 2023 covers the following categories:
- Bus journey within the city per drop constant route
- Bus journey intercity (state route) charge per person
- Air fare charge for specified routes single journey
- Journey by motorcycle (Okada) per drop
- Water way passenger transport
It said the average bus fare for journeys within the city per drop slashed -6.23% from N1,117.30 in October to N1,047.63 in November 2023, but shot up 64.44 per cent from N637.10 in November 2022.
The average fare for bus journeys intercity per drop was N6,206.53 in November 2023, growing 5.4 per cent month-on-month (MoM) above N5,885.68 in October.
December rush pushes single flight ticket to N200k
December activities which pull in more air travellers have also raised single flight ticket price to N200,000 on domestic routes.
The average N100,000 per one-hour economy flight in October has doubled to N200,000 for flights to Eastern and Southern destinations, with fears of further hikes to between N350,000 and N500,000 subject to seat availability.
The price increase is also stoked by high operational costs, limited capacity, and alleged exploitation.
An average fare of N70,000 on some routes in October now goes for between N120,500, and N270,000 depending on the airline and time of booking.
Air Peace (one-way)
- Lagos-Anambra in the week before December 25 – N171,500.
- After December 25 – N66,900.
- Lagos-Enugu – between N123,900 and N266,800.
United Nigeria Airline (single ticket)
- Lagos-Enugu – between N125,500 and N220,500 per seat.
- Lagos-Anambra – between N142,500 and N200,000.
- Abuja-Anambra – between N142,500 and N220,500.
Ticket prices on the traditional routes of Lagos, Abuja, Port Harcourt, and Kano remain between N100,000 and N160,000
Unrelenting naira depreciation also adds to costs as aviation fuel now sells for N1,000 per litre, having risen 400 per cent in the past three years.
Airlines subsiding the cost of seats
United Nigeria Airlines Chairman Obiora Okonkwo, who doubles as Airlines Operators of Nigeria (AON) spokesman, explained domestic airfares for so long did not tag along with hikes in fuel price, foreign exchange (forex), and other operational costs to ensure affordable air travel.
“We are subsidising the cost of seats per flight. So, if you see fare increases now, please understand. They may still be higher because we are not covering the cost of operations,” he said.
“The little adjustment is to serve the public better. It is better to fly safe, be viable and remain in business than just flying cheap and risk collapse.”
Aero Contractors Chief Executive Oficer Ado Sanusi blamed hikes in airfares on airlines that have monopolised some Eastern routes due to low capacity.
Sanusi said some airfares on some routes are exploitative, citing the South East and South South, and sought increased capacity and additional airlines to join existing operators.
“I believe that there are some exploitative tendencies and prices. I believe so, especially on the monopoly routes. The eastern routes are somehow monopolised and come with exploitative prices,” he stressed.
“It’s the capacity. If we have more airlines coming into the country and the Nigeria Civil Aviation Authority (NCAA) allows more airlines to fly, then it will bring the price down.
“The more airlines we have flying, the more competitive it becomes and the more the prices will go down, but since we make regulations that are so hostile to start-up airlines, then, the prices will always go up.”
Airline operators have routinely criticised the policy of the Nigerian Civil Aviation Authority (NCAA) that mandates scheduled local carriers to have a minimum of six aircraft fleet in order to ease flight delays and cancellations.