Despite high fares, domestic airlines get more passengers
Amid the rising air fares, domestic passengers’ movement marginally increased in the first quarter and half year 2024, according to data obtained from the Nigeria Civil Aviation Authority (NCAA). Daily Trust reports that air fares have spiked by over 100 per cent in the domestic market in the last one year owing to high cost […]
The Nigerian Civil Aviation Authority (NCAA)
Amid the rising air fares, domestic passengers’ movement marginally increased in the first quarter and half year 2024, according to data obtained from the Nigeria Civil Aviation Authority (NCAA).
Daily Trust reports that air fares have spiked by over 100 per cent in the domestic market in the last one year owing to high cost of operation triggered by foreign exchange crisis.
But despite this, the number hasn’t been negatively impacted. In fact, there was a marginal increase in the number of flights operated by both the domestic and international airlines in the year under review.
According to the executive summary of international and domestic flight operations, there was a marginal increase in number of flights in Q1 2024 as against Q1 2023 on the domestic front with 3,616 (January to March, 2024) and 3,073 (Q1 2023).
Also, the half year report showed 7,144 flights were operated in 2024 and 35,398 on the domestic and international fronts respectively.
In the first quarter of 2023, the domestic airlines conveyed 1, 391, 560 inbound passengers, 1, 400, 031 and outbound passengers making up 2,791,591 passengers airlifted but in the same period in 2024, there were 1,460,647 and 1,489,314 inbound and outbound passengers airlifted, totalling 2,949,961.
Though the third quarter report has not been revealed, there is widespread fear of a drop in the traffic owing to the high cost of air fares with a one-way Abuja Lagos going as much as N143,000.
According to the National Bureau of Statistics (NBS), air fares increased by 57.81% year-on-year, from N79,013.48 to N124,693.40 from September 2023 and September 2024.
A random check on some airlines yesterday indicated that a one-way flight from Lagos to Abuja is between N143,000 to N162,000, which is almost a 100 per cent hike compared to last year.
Experts blame the hike on the factor of demand and supply and the situation of the economy with air transportation now becoming the exclusive preserve of the rich.
“It is just a fundamental of economics. Things are scarce, resources are scarce but me and you, we want everything. The resources we have in this world are limited but we want so many things. So the only way to share those scarce resources is by supply and demand,” Aviation Management Consultant Babatunde Adeniji said.
He said having a reduced fare might be a mirage in the near future for the airlines to break even.
“If I am an airline operator that has been losing money during low season, it is during the peak season that you can make some money. Again, it is a perfect situation for Nigeria where people don’t face the government, they are now blaming the players for reacting to those forces. They would react to those forces or they and their families would die of hunger.
“It’s never going to work to have a reduced fare. The industry operates within the economy. So you cannot tell the industry to do things outside the economy. It is as simple as that,” he added.
Director of Strategy, Zenith Travels, Olumide Ohunayo in a chat with our correspondent insisted the number of flights does not match the load factor which has drastically reduced this year.
He stated cargo movement would have increased because many people now prefer to send their goods instead of travelling.
He said, “There is a difference between the number of flights and the number of passengers carried, if my flight was 10 last year and I had about 90% occupancy load factor like they say in Aviation and I’m having 15 flights this year, I’m having about 50%. Load factor. So which one do you think makes more profit?
“People even refuse to travel by road, but movement of cargo and goods have increased, rather than going, people are sending items to their relatives, calling their clients on video call to look for what they want, and it is sent.”
Former Rector of the Nigerian College of Aviation Technology (NCAT), Capt. Samuel Caulcrick said the capacity constraint in the industry is a major challenge that has worsened air fares.
He stated that without more aircraft in the system, the airlines may likely collapse, saying, “I think it is time for the government to come in now because now they cannot borrow money. The way the naira is going now, only very few people can afford to travel.”
Peterside decries rising airfares
Former Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dakuku Peterside in a recent article decried the rising costs of air transportation.
Peterside, now a public affairs analyst, said, “These rising costs have profound implications, particularly for a nation where freedom of movement is vital for economic and social inclusion. The aviation sector is not just a mode of transportation but a key driver of economic growth and social mobility. Affordable air travel enables Nigerians to access jobs, markets, and opportunities far beyond their immediate surroundings.
“When air travel is reserved for the wealthy, it limits social mobility and restricts the benefits of a connected society. However, if made affordable and accessible, air travel can promote social inclusion by providing access to remote and underserved regions, improving living standards and supporting poverty alleviation. This promising vision underscores the importance of restoring affordability and accessibility to air travel in Nigeria.”