Nigerians Face Rising Airfares as Demand Peaks Ahead of Holidays

As the festive season approaches, many Nigerians are experiencing a sharp increase in domestic airfares. This surge is primarily attributed to heightened demand, according to Dr. Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria (OPAN). In an interview with ARISE News, Nwuba highlighted that travelers are paying the price for delaying their ticket purchases.

Nwuba emphasized that this trend is not unusual, noting, “Every year it’s the same. Prices go up at Christmas time.” He explained that the current fare increases are driven by basic economic principles of supply and demand, where increased traveler numbers coincide with limited seating availability. He stated, “If it’s exploitation, I also pay those high fares. Everybody’s paying them. It’s simply driven by the season.”

The rise in airfares is a result of travelers waiting until the last minute to buy tickets. Nwuba pointed out that many had the opportunity to secure cheaper fares in October, yet opted to delay their purchases. “All of us had the opportunity to buy these same tickets in October when the prices were low, but we waited till the last minute,” he remarked. As flights fill up, airlines adjust their pricing accordingly, with fares increasing as seats are sold.

Demand and Capacity Challenges in Nigerian Aviation

Nwuba addressed concerns raised by the Minister of Aviation regarding insufficient aircraft and competition exacerbating the fare situation. He argued that demand remains the central pressure point in the market. “Aviation doesn’t look to preserve prices to the point where only the elite fly,” he stated, highlighting that Nigeria’s aviation sector only serves a small fraction of its population. With only about 0.02 percent of the population flying, the imbalance between demand and capacity is evident.

Despite the entrance of three new airlines into the market this season, Nwuba noted that the December demand surge continues to outstrip available capacity. He personally noted a significant increase in ticket prices, stating, “I’m flying tomorrow and I’m paying double what I used to pay. Nobody has special privileges.”

The economic impacts of currency fluctuation also contribute to high airfares. Nwuba explained that the devaluation of the naira has made fares appear exorbitant. For example, a fare of ₦300,000, equivalent to approximately $200, reflects the same dollar price from the 1990s, despite significant currency depreciation.

Nwuba stressed that airlines do not desire high prices but are compelled to raise fares to cover their operational costs. He highlighted the challenges faced by the industry, including a 17 percent higher cost for fuel in Nigeria compared to other regions. “Service providers are reporting double-digit profits and the airlines are barely making any money,” he added.

Calls for Systemic Aviation Reform

To address the rising costs and improve affordability for travelers, Nwuba called for a comprehensive review of aviation charges. He advocates for an overhaul of the entire aviation system, including fees from handling companies, fuel suppliers, and various taxes. “Government has agreed regionally to lower these charges, and you should see lower prices in the new year,” he stated.

In conclusion, Dr. Nwuba reiterated that the current wave of high fares is a result of timing and demand rather than exploitation by airlines. “People waited too late to buy their tickets, and they are paying the premium prices. It’s not exploitation as we think of it.” As the holiday season approaches, it remains crucial for travelers to plan ahead to avoid inflated airfare costs.