Aviation experts have predicted a sharp rise in local airfare in the country due to the surge in the price of aviation fuel, also known as Jet A1 and foreign exchange.
LEADERSHIwwP reports that local airline operators in Lagos confirmed that Jet A1 now sells for N1,000 per litre at the moment and it constitutes 70 per cent of airlines operating cost as against 40 per cent it was before the global energy crisis.
Also, a visit to the websites of local airlines in Nigeria have shown that one way tickets hovers between N95,000 to N110,000 while return tickets are currently between N150,000 to N220,000 depending on the time of booking.
However, speaking to LEADERSHIP, the former national financial secretary of National Association of Nigerian Travel Agency (NANTA), Daisi Olotu, said there would be an upward review of the prices from their current price due to the price of Jet A1.
According to him, the passengers will be at the receiving end as they will have to pay more to get to their various destinations.
He, however, accused local airlines of using the Jet A1 crisis to increase the price of air tickets indiscriminately.
“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.
“I don’t know the policy the government is putting in place to arrest the situation because if not arrested, things, especially price will keep skyrocketing.
He further stated that the air passengers have no other option than flying because of insecurity across the country that has made road transport increasingly impossible.
“Local travel market is struggling and road transportation is also not safe due to insecurity. Currently, no rail, water or road transportation and airlines are having their own challenges and definitely, they will sell what they buy to their Customers.”
Also speaking, the chief executive officer, Belujane Konzult, Chris Aligbe, said the price of Jet A1 will lead to an increase in airfare as the burden will be shifted to the passengers.
Aligbe, said Jet A1 is the highest single cost factor in airline operation, therefore, the cost will have a terrible impact on airline operations.
“There is no difference between the aviation sector and every other sector of the economy. The way it affects us so terribly is the same way it affects other sectors. It’s very sad and Jet A1 is basically the aviation sector so, certainly, it will have a terrible impact on domestic airlines.”
Aligbe who is a former spokesman of the defunct Nigerian Airways, stated further, “Fuel is the highest single cost factor in airline operation, so, when we have such things skyrocketing, the airlines will be in a very terrible situation. They will take a beating and they will transfer the cost to the passengers otherwise they won’t survive. No one expects the local airlines to bear that burden without passing it on to their passengers. That’s the situation we find ourselves in.”
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