The sharp rise in domestic airfares across Nigeria ahead of the Christmas season is largely a function of demand, rather than deliberate exploitation by airlines, the President of the Aircraft Owners and Pilots Association of Nigeria (OPAN), Dr. Alex Nwuba, has said
Dr. Nwuba also called for system overhaul, adding that to alleviate the burden on travellers, there is need for a comprehensive review of aviation charges, including fees from handling companies, fuel providers, taxes, and other ancillary charges.
Speaking in an interview with Ariser News on Wednesday, Dr. Nwuba explained that the surge in ticket prices is a seasonal phenomenon, repeating annually during peak travel periods.
“It’s not new. Every year it’s the same. Prices go up at Christmas time. The forces of economics are at play.
”It’s a demand-driven price increase and it’s compensation for low fares during the low season,” he said.
Nwuba attributed much of the pressure to last-minute bookings by travellers.
“There are a lot more people looking to buy tickets and the prices have been pushed up.
”All of us had the opportunity to buy these same tickets in October when the prices were low, but we waited till the last minute, and we’re paying the price for that,” he said.
He also explained how airline revenue management systems work.
“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. With the first few seats sold, they’re sold cheaply, and as the number of seats gets sold, the prices go up.
”People paying these high prices shouldn’t be buying tickets in December they should have bought them in October,” Nwuba added.
Responding to concerns raised by the Minister of Aviation regarding aircraft shortages and limited competition, Nwuba insisted that demand remains the primary factor driving high fares.
“Aviation doesn’t look to preserve prices to the point where only the elite fly.
”Nigeria had 15 million passengers with a population of 200 to 300 million — just 0.02 per cent of the population.
”In the U.S. and Europe, volumes are many times the population, and those volumes drive down prices,” he said.
Even with the entry of new airlines into the market, the December surge continues to overwhelm available seat capacity.
“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.
”I’m flying tomorrow and I’m paying double what I used to pay. Nobody has special privileges,” Nwuba noted.
The OPAN president also highlighted the impact of rising operational costs and the devaluation of the naira on airfare prices.
“If you look at a fare today of N300,000, it’s about $200. It’s almost the same dollar price you were paying in the 90s, but the naira has devalued so much that fares look extremely high,” he said.
He stressed that airlines were not profiteering from high fares but instead covering significant operational expenses.
“The airlines don’t want these high prices. They want more people to fly. But they have to cover a tremendous amount of cost.
”We pay 17 per cent more in Nigeria for fuel. Service providers are reporting double-digit profits and the airlines are barely making any money,” Nwuba explained.
Call for System Overhaul
To alleviate the burden on travellers, Nwuba called for a comprehensive review of aviation charges, including fees from handling companies, fuel providers, taxes, and other ancillary charges.
He noted that government agreements to lower these charges regionally could help bring down prices in the coming year.
Nwuba reiterated that the current wave of high fares is a predictable outcome of timing rather than exploitation.
“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 said.
As millions of Nigerians prepare for the holiday season, the message is clear: planning ahead remains the most effective way to secure affordable air travel.
