Nigerians Face Skyrocketing Airfares as Christmas Travel Peaks

As the Christmas season approaches, domestic airfares in Nigeria have surged significantly, leading to complaints from travellers. Dr. Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria (OPAN), attributes this sharp increase primarily to heightened demand, emphasizing that many Nigerians are “paying the price for waiting till the last minute” to purchase their tickets.

In an interview with ARISE News on December 6, Nwuba explained that the seasonal price hikes are not a new phenomenon. He stated, “Every year it’s the same. Prices go up at Christmas time. The forces of economics are at play.” He clarified that this rise in fares is not due to airline exploitation but rather a reflection of demand-driven pricing mechanisms.

High Demand Drives Price Increases

According to Nwuba, the aviation market operates on principles of supply and demand. “There are a lot more people looking to buy tickets, and the prices have been pushed up,” he noted. He urged travellers to consider purchasing tickets well in advance when prices are significantly lower. “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, and we’re paying the price for that,” Nwuba added.

He further elaborated on the pricing structure used by airlines, stating that tickets are sold in “buckets.” As seats fill up, the cost of remaining tickets increases. “Airlines sell tickets in buckets. When you buy them way in advance, you buy much cheaper,” he explained. As demand peaks closer to the travel date, prices rise accordingly, resulting in higher fares for those purchasing in December.

Operational Costs and Currency Devaluation

Concerns have been raised by Nigeria’s Minister of Aviation regarding the impact of limited aircraft availability and competition on airfares. Nwuba acknowledged these challenges but maintained that the primary issue remains demand. “Nigeria had 15 million passengers with a population of 200 to 300 million — just 0.02 percent of the population,” he remarked, contrasting this with the higher passenger volumes seen in the United States and Europe, where economies of scale help reduce prices.

He also connected the rising airfares to the devaluation of the Nigerian naira and escalating operational costs. “If you look at a fare today of ₦300,000, it’s about $200. It’s almost the same dollar price you were paying in the 90s, but the naira has devalued so much that fares look extremely high,” he explained. Nwuba emphasized that airlines do not benefit from high prices; rather, they are compelled to adjust fares to cover substantial operational costs.

Nwuba highlighted the disparity between service providers and airlines, stating, “We pay 17 percent more in Nigeria for fuel. Service providers are reporting double-digit profits, and the airlines are barely making any money.” He called for a comprehensive review of aviation charges to alleviate the financial burden on travellers.

Calls for System Overhaul

In light of the current fare situation, Nwuba advocates for a thorough overhaul of the aviation system in Nigeria. He believes that addressing charges from handling companies, fuel suppliers, and taxes could lead to more affordable air travel. “Government has agreed regionally to lower these charges, and you should see lower prices in the new year,” he stated.

Wrapping up the discussion, Nwuba reiterated that the spike in airfares is largely a consequence of timing. “People waited too late to buy their tickets, and they are paying the premium prices. It’s not exploitation as we think of it,” he concluded.

As the holiday travel season approaches, the situation serves as a reminder for travellers to plan ahead and secure their tickets early to avoid steep prices.