AIRFARES by domestic carriers have not changed, despite a recent decline in global oil prices. Passengers anticipated that lower crude oil prices would reduce Jet A1 costs and, in turn, domestic airfares.
However, current airline ticket prices remain unchanged despite the recent decline in crude oil prices.
Checks at the General Aviation Terminal (GAT) of Murtala Muhammed Airport on Thursday revealed that Enugu Air charges N282,000 for a one-way Lagos-Abuja flight, United Nigeria Airlines charges N185,000 for the same route, and Arik Air charges N213,709 for a Lagos-Port-Harcourt flight.
ValueJet sold a one-way ticket from Lagos to Port Harcourt for N214,499, while Air Peace charged N222,100 for a one-way ticket from Lagos to Abuja. Passengers flying to Kano with Rano Air purchased one-way tickets for N193,500.
Speaking on the impact of the global crude oil cost, Mr. Adedayo Olawuyi, Chief Commercial Officer of United Nigeria Airlines, stated that the airline has not experienced a significant decrease in aviation fuel costs, which have remained roughly unchanged amid fluctuations in global crude oil prices.
“As of December, we were buying it at about N900. Now, as I speak, it’s about N1,600 to N1,700, so there’s still a huge difference. And have ticket prices doubled? No,” Olawuyi said.
Olawuyi argues that market forces are not fully represented in airfares, highlighting that the entry of new airlines is causing competitive pressure that lowers fares.
Aviation industry analyst Mr. Felix Ukah noted that the recent decline in crude oil and petrol prices is generally favorable for the aviation sector, but he cautioned stakeholders to exercise patience as benefits may take time to materialize.