Airfares to UK, US, others jump by 55%

The depreciation of the naira against the United States dollar by 55 per cent at the official foreign exchange market has led to a commensurate depreciation in airfares on international routes in Nigeria, according to findings by The PUNCH.

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The naira had fallen from approximately 900/dollar to over 1,400/dollar on Monday after the FMDQ Exchange, which records data the nation’s official exchange rate, reviewed its methodology for calculating the rate.

The review came after the Central Bank of Nigeria accused approved foreign exchange dealers of reporting false figures.

However, barely 24 hours after the movement of the official exchange rate, international airlines operating in Nigeria moved the exchange rate for pricing their tickets to from about N900/dollar to N1,421/dollar.

The development led to approximately 55 per cent in international airfares on Nigerian routes.

Findings by our correspondent on Wednesday showed that ticket prices on Lagos-London-Lagos, Lagos-New York-Lagos, Lagos-Johannesburg, Lagos, among other top destinations had increased commensurately.

https://punchng.com/airfares-to-uk-us-others-jump-by-55/?amp

The President of the National Association of Nigerian Travel Agencies, Susan Akporiaye, who confirmed the sharp increased, said the development would compound the woes of travel agencies.

“We have been feeling the pinch for a long time, and the situation is just getting worse. People who are traveling are not doing so for fun; they are traveling for serious business like medical or even education. It’s no longer about leisure,” Akporiaye told The PUNCH.

Akporiaye explained that travelers were reluctantly parting with money, and given a choice, they wouldn’t pay at all.

“For instance, an air ticket that used to cost $1000 has now surged to N1.5m. The financial strain is a necessity for travelers, forcing them to squeeze their budgets.”

She said the industry operators empathised with their situation, with some passengers resorting to appealing and offering collateral just to pursue their objectives and travel.

The president said the prices would undoubtedly decrease, adding that, “I am optimistic. It’s not the fault of the airlines; rather, it’s a reflection of the country’s economic situation.”

The NANTA leader said at the moment there was no noticeable difference between the rates in the black market and the official window of the forex market