Rising airfare forewarns low patronage ahead of holiday season

With the holiday season around the corner, travel agencies are already feeling the pinch of a looming low patronage, no thanks to the airfares that now cost an arm and a leg.

Findings from travel agencies suggest that more families are making less travel plans than usual in October, blaming the development of a hike in air transport costs.

Notably, harsh economic realities, including the high cost of aviation fuel and other operational costs, have steadily pushed up flight tickets, making citizens hesitant to fly for leisure.

Recently, the National Bureau of Statistics’ (NBS) September 2024 Transport Fare Watch revealed that the average domestic airfare in Nigeria for a single trip on specific routes was N124,693.40 in September 2024, being a sharp rise of 57.81 per cent over the N79,013.48 recorded in the same month the previous year.

In comparison to August 2024, fares increased by a modest 0.80 per cent month over month.

As stated by the NBS, “In air travel, the average fare paid by air passengers for specified routes on a single journey was N124,693.40 in September 2024, showing an increase of 0.80 per cent compared to the previous month (August 2024). On a year-on-year basis, the fare rose by 57.81 per cent from N79,013.48 in September 2023.”

According to the report, seasonal fluctuations, rising fuel prices, exchange rate swings, and a lack of infrastructure improvements played a role in the increase in air travel expenses throughout Nigeria.

Checks by The Guardian revealed that last year, a one-way economy class ticket on Air Peace, Ibom Air, Green Africa, and ValueJet from Lagos to Abuja, cost between N50,000 and N65,000. Today, depending on the airline and the day and time of travel, it costs between N140,000 and N220,000.

The average one-way economy class ticket from Lagos to Owerri used to cost N60,000, but now it goes from N150,000 to N300,000 on Air Peace and Green Africa.

A one-way economy class ticket on Air Peace and Green Africa from Lagos to Enugu, which used to cost an average of N60,000 last year, is now selling for between N140,000 to N500,000.

As the festive season approaches and an expected increase in air fares, travel agents told The Guardian that the hike in airfares is a factor affecting flight bookings.

Managing Director of a travel, tourism, and logistics management company, Blue Pegasus Limited, Ijeoma Onuoha, said individuals are buying tickets in trickles as the holiday period approaches. She stated that though the festive season is usually decided by what promos they run for the season, “the airlines are not making it easy to plan”.

“We have planned discounts on airport transfers and security detailing as incentives to encourage clients to fly. However, our corporate clients have sent in requests, which sadly are still unequalled to last year’s traffic. I must note that the corporate requests are due to our event planning retainership,” Onuoha said.

Senior travel/education consultant of Dinspira Travel Nigeria Limited, Golden Okoye, said that the fare increase was a shock to people, and some thought the fare prices would drop and push back their travel.

She, however, explained that most people would adjust to the new normal, and decide to go ahead and take the trips, as there is a projection that the exchange may keep rising, leading to more increases in fare prices.

“Since the holiday period (Christmas) is approaching, our agency has not experienced a significant increase in flight booking for the Christmas period,” Okoye stated.

The Chief Executive Officer (CEO) of Shalom Travels and Tours, Ezra Unanaojo, added that the soaring cost of flight tickets reduced bookings, especially ahead of the Christmas season.

“You can’t blame it on the customers. The economy hasn’t been smiling. Look at the cost of fuel for the road and for the air transport; the festive spirit of citizens is down. However, I’m still positive for the coming months,” Unanaojo said.

Though experiencing high traffic bookings despite the hike in airfares, CEO of De Koko T&T, Ezeweputaku Uchenna, stated that the festive period this year is on a swing of differing emotions. She said the increase in flight tickets made some citizens book fast, and early while others rescinded their travel plans.

“It’s in-between, because while some are busy planning on experiencing the snow this Christmas abroad, some are also struggling to eat three square meals as a result of the hard times in the country,” Uchenna said.