Key highlights
- Air travelers paid higher for their single-journey tickets in February 2023 than they did in February 2022.
- The highest regional prices came from the Northwest followed closely by the Southwest
- Operational costs for indigenous airlines have increased in recent times and the cost burden is being passed down to customers.
The National Bureau of Statistics (NBS) has said that Nigerians paid 66.36% more for flight tickets within one year. This is according to its latest Transport Fare Watch report, recently released. In the report, NBS stated that airfare charges rose by 66.36% from N44,825.04 in February 2022 to N74,571.62 in February 2023.
Highest and lowest prices: The highest air travel costs in February 2023 were recorded in Enugu, Bayelsa, and Kebbi states, while the lowest air travel costs were recorded in Abia, Akwa Ibom, and Lagos/Benue/Kano/Niger.
- According to the report, Nigerians paid an average of N80,500 in Kebbi, N80,000 in Bayelsa, and N79,000 in Enugu. Meanwhile, those in Abia paid N69,850, people in Akwa Ibom paid N70,100 and those in Lagos/Benue/Kano/Niger paid N70,000.
Comparing prices by region in the last year: In North Central, air travelers paid an average of N72,357.14 for a single journey, which is a 57.41% increase from the N45,968.02 charge paid in February 2022.
- In the Northeast, air travelers paid an average of N76,350 for a single journey, which is a 67.63% increase from the N45,547.62 paid in February 2022.
- In the Northwest, Nigerians paid an average of N74,857.14 for a single journey, which is a 71.41% increase from N43,672.12 paid in February 2022.
- In the Southeast, air travelers paid an average of N75,270 for a single journey, which is a 68.62% increase from N44,637.61 paid in February 2022.
- In the Southwest, air travelers paid an average of N74,016.67 for a single journey, which is a 70.95% increase from N43,297.69 paid in February 2022.
- In the South-South, Nigerians paid an average of N75,016.67 for a single journey, which is a 63.80% increase from N45,797.61 paid in February 2022.
Why airfare costs are increasing: Airlines are seeing an increase in operating costs, and this has made it impossible not to pass the cost burden on to customers. According to Osita Okonkwo, the Chief Operating Officer of United Nigeria Airlines, operating costs of indigenous airlines have increased by 300% in the last two years.
These increased costs are mostly linked to higher jet fuel costs as well as various levies and charges by government agencies.
What you should know: As indicated above, air travelers paid higher in February 2023, however, costs could increase further. Nairametrics recently reported that the International Airline Operators in Nigeria have adjusted their exchange rate to N551/$1 from N462/$1 just days ago.
So, international airline operators will adjust their prices to reflect the new exchange rate, which means higher ticket prices, and this could result in reduced air travel demand.
