ABUJA, Nigeria — Airfares on international routes are set to adjust again as Nigeria’s exchange rate rises.
The International Air Transport Association, IATA, has notified stakeholders that the IATA exchange rate would change from N776.90/$1 to N803.90/$1.
The rate is primarily determined by the Importer and Exporter (I&E) window which closed at N803 to a dollar on Monday, July 17, 2023.
However, the exchange rate, steered by market forces, is predicted to improve on Wednesday, July 19, 2023, decreasing to N795 to a dollar.
Responding to the development, President of the National Association of Nigerian Travel Agencies, NANTA, Mrs. Susan Akporiaye, reassured stakeholders and the general public that there was no cause for alarm as the rate continues to fluctuate.
“There’s no need to panic,” she stated, “The rate continues to fluctuate. The market will adjust accordingly.”
The recent hike in the exchange rate has implications for international airfares as the cost of flights is linked to the value of the Naira.
A depreciating Naira increases costs for foreign airlines operating in Nigeria and often increases airfares.
Although expected to be temporary, this recent exchange rate increase may lead to a brief spike in the cost of international flights.
It is worthy of note that Nigeria has recently witnessed a surge in airfares on international routes.
This hike is mainly attributed to the depreciation of the Naira and the consequent financial strain on foreign airlines operating in the country.
With this latest development, airfares may be adjusted, but the extent and duration of the impact remain to be seen.
Aviation Fuel Scarcity: Airline Operators Warn Nigerians Of Disruptions In Flight Schedules
On Tuesday, December 20, 2022, Airline Operators of Nigeria, AON told travellers to brace up for more flight delays and cancellations as aviation fuel scarcity bites harder.
Obiora Okonkwo, the AON spokesman, disclosed this in a statement obtained by our correspondent, in Abuja.
He said airlines are currently facing difficulty getting the commodity from suppliers which may further increase the cost of air tickets.
Okonkwo said: “there are impending disruptions in scheduled flight operations due to the scarcity of aviation fuel, otherwise known as JET-A1, which reared its ugly head again in the past few days. The scarcity will no doubt force airlines to reschedule flights leading to late operations and, or, cancellations.
“This unintended development is a pain on airline operators and a stain on the industry especially at this time of mass movement of people for the Christmas and New Year festivities.
“While we do our utmost best to manage the situation and ensure safe flight operations, we plead the understanding of the traveling public in the circumstance”, he appealed.
He, therefore, called on product importers and other marketers to as a matter of urgency “resolve this ugly situation to ease the stress it brings on the travelling public.”
