Information reaching Nairametrics suggest some airlines in Nigeria have started informing their Travel Agents to stop issuing tickets on their behalf due to the new exchange rate policy.
According to sources, airlines who used to sell tickets at a benchmark fixed exchange rate price are afraid they might face huge exchange rate losses with the introduction of the new exchange rate floating system.
The CBN launched the new flexible exchange rate policy on Monday with the Naira closing at about N288 from N197 at the interbank dropping by about 45%. Despite closing at N288, the exchange rate did trade at prices ranging from N197, N235, N255, N280 indicative of a volatility that exists in the market. Airlines, thus believe selling tickets when the exchange rate is this volatile could see them incur huge losses.
Tickets are typically set in dollars before being issued at the local currency at an exchange rate that is hitherto determined by the CBN. With the new exchange rate policy, airlines have no choice but to rely on a more volatile floating exchange rate. They have thus informed their travel agents to quit issuing tickets for now until they fully understand the exchange rate market.