Nigerian airlines have significantly increased their minimum base fares, reaching as high as N200,000 and more for one-way tickets. The Guardian reports that this nearly 100 percent hike in airfares is directly linked to the continued rise in the price of aviation fuel, also known as Jet A1.
Airline fare adjustments across the board
Checks on airline portals indicate that the upward revision in ticket prices affects most carriers, except a few that had not yet adjusted their fares at the time of filing this report. Aviation fuel currently sells at about N2,650 per litre at some airports across the country.
United Nigeria Airlines has fixed its minimum base fare at N200,000 per flight, regardless of the route. Air Peace has adjusted its fares upward to approximately N211,600 for one-way tickets. Ibom Air increased its base fare to around N200,300. In contrast, Arik Air still maintains N113,000 and N114,000 per flight from Abuja to Lagos. Aero Contractors retained fares between N123,127 and N146,702 for selected routes, while ValueJet stands at between N118,571 and N132,857 per flight for a flight from Lagos to Abuja.
Industry sources explain the rationale
Industry sources said the fare increase became inevitable as operators battle rising operational costs and dwindling cash flow. An official from one of the airlines, who spoke on condition of anonymity because he was not authorised to comment, said the airlines decided after extensive consultations and careful consideration of prevailing economic realities.
The source dismissed the notion that airlines reviewed fares in unison, stressing that each carrier made individual decisions. He stated: “We have adjusted our minimum fares to a minimum of N200,000 per flight, irrespective of the route. This is something we have done with a lot of pain and after serious consideration of many factors.”
“We cannot continue to subsidise travellers with the current situation of JetA1. Without the adjustment, there will be a serious crisis in the industry. Cash flows have run out and debts are mounting,” the source added.
Appeal for understanding
The source appealed to the travelling public for understanding, insisting that the increase was unavoidable to ensure the survival of domestic airlines. “It is a painful decision, but we cannot continue to bury our heads in the sand,” he said.
The Federal Government had earlier promised intervention measures to cushion the impact of rising aviation fuel prices on operators, but as of Tuesday, no steps had been taken.
