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Nigerians Rejoice as International Airline Offers Affordable Tickets Amid New Forex Rate

Following the appreciation of the Naira, there has been a noticeable reduction in flight ticket prices from Nigeria to other countries. The Naira’s uptick came after the Central Bank of Nigeria (CBN) addressed outstanding debts to airlines by fulfilling verified and genuine forward requests. Experts view this move as a restoration of confidence in Nigeria’s foreign exchange system, particularly for foreign investors in the aviation sector. According to Samuel Oyekanmi, a macroeconomic analyst, this action signals increased FX liquidity in the economy, alleviating pressure on both official and parallel exchange rates.

 

Legit.ng reported that the foreign exchange market pressure eased as the Naira witnessed growth against the United States dollar, closing at N1,382.95 to the dollar on Tuesday, March 26, 2024. FMDQ data indicated a 1.78% appreciation compared to the previous close of N1,408.04/dollar on Monday, representing a 178 basis point increase. Last year’s FX reforms led to significant Naira devaluation, substantially hiking ticket rates through the International Air Transport Association (IATA).

 

The IATA ticket sales rate in Nigeria decreased to N1,468/$ as of Tuesday from approximately N1,800/$ a few months earlier. BusinessDay noted rapid ticket price declines for various destinations due to the exchange rate drop. For instance, British Airways’ one-way ticket from Lagos to London now costs N1.7 million (Economy) and N6.8 million (Business Class), down from N3 million and N11 million, respectively. Similarly, Lufthansa’s one-way ticket from Lagos to London now costs only N2 million (Economy) and N9 million (Business), previously N3 million and N9 million. Virgin Atlantic’s Economy, Economy Premium, and Business Class tickets dropped to N1.5 million, N3 million, and N6 million from N2 million, N5 million, and N12 million, respectively.

 

Stakeholders attribute a significant portion of the price cuts by foreign airlines to Air Peace’s reduction in ticket prices on the London route. Nigerian travelers seeking cheaper tickets to London have filled up Air Peace’s inaugural trip scheduled for March 30, 2024. The airline slashed the cost of travel by N1.2 million for its Economy Class ticket. A return Economy Class ticket costs N1.2 million, while a return Business Class ticket costs N4 million. Additionally, Nigerian students studying in the UK are eligible for an extra 15% discount.

What do you think?

Written by Realinfoteam

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