Nigerians Face High Airfares Due to Last-Minute Ticket Purchases

As Nigerians prepare for the upcoming Christmas season, domestic airfare prices have surged significantly. Dr. Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria (OPAN), attributes this increase primarily to consumer demand, stating that travellers are “paying the price for waiting till the last minute” to purchase their tickets.

In an interview with ARISE News, Nwuba highlighted that the rise in airfares during this period is a regular occurrence. He emphasized, “It’s not new. Every year it’s the same. Prices go up at Christmas time.” He explained that this phenomenon is a result of basic economic principles, noting that the demand-driven price increase compensates for lower fares during off-peak seasons.

Despite accusations from lawmakers suggesting that airlines are exploiting customers, Nwuba clarified that the situation impacts everyone in the industry, including the operators themselves. “If it’s exploitation, I also pay those high fares. Everybody’s paying them. It’s simply driven by the season,” he remarked.

Understanding the dynamics of airfare pricing, Nwuba elaborated on the concept of “bucket pricing,” where airlines sell tickets at various price points based on availability. “Airlines sell tickets in buckets. When you buy them way in advance, you buy much cheaper. As the aeroplane begins to fill up, the prices go up,” he stated. He urged consumers to purchase their tickets earlier, as those who delay until December face substantially higher costs.

While the Minister of Aviation has raised concerns about limited aircraft availability and competition exacerbating the situation, Nwuba insisted that demand remains the primary factor driving prices. He pointed out that Nigeria has around 15 million air travellers amidst a population of 200 to 300 million, equating to just 0.02 percent of the population. In contrast, countries in Europe and the United States see much higher passenger volumes, which help to drive down prices.

Nwuba acknowledged the recent arrival of new airlines in the market, stating that even with their increased capacity, the December demand continues to outstrip supply. “Three new airlines sprang up before this season, they introduced their seats, but prices kept going up because millions more people want to fly in December,” he said. He personally noted that he is paying double the fare he used to pay for a flight.

The impact of the naira’s devaluation and rising operational costs is another contributing factor to increased fares. Nwuba explained that a fare of ₦300,000, which is approximately $200, is comparable to prices from the 1990s when the naira was much stronger. “The naira has devalued so much that fares look extremely high,” he added. Airlines, he noted, do not benefit from high prices; instead, they are compelled to maintain them to cover their significant cost burdens.

Nwuba called for a comprehensive review of aviation charges to alleviate the financial strain on travellers. “What needs to be done is a comprehensive overhaul of the aviation system — the charges from handling companies, fuelers, taxes, and all kinds of additional charges,” he stated. The government has agreed regionally to lower these charges, which could lead to more affordable prices in the new year.

In conclusion, Nwuba reiterated that the current wave of high airfares is a direct result of timing. “People waited too late to buy their tickets, and they are paying the premium prices. It’s not exploitation as we think of it,” he affirmed.