Price of Int’l airfares to rise as airlines adjust exchange rate

Airlines’ exchange rate has surged from N582 per dollar to N610 per dollar, signaling an imminent increase in international airfares ticket.

The surge in rate is attributed to the accumulation of trapped funds by foreign airlines, which now exceed $700 million.

The rate has increased twice in the past two months, rising from N460/$ to N551/$ in March and further to N610/$ in April.

Despite efforts to avoid the collection of funds in naira and reduce the amount trapped in Nigeria, airlines’ trapped funds have surged from $744 million in March to $802 million in April.

Susan Akporiaye, President of the National Association of Nigerian Travel Agencies (NANTA), confirmed the rise in the RoE and stated that airfares would go up as a result.

Read Also:Airlines’ trapped funds disrupt Nigerians’ ‘japa’ plans

She explained that an airfare that cost N1.5 million yesterday now costs N1.7 million, and there are reports that airlines are trying to match the rate that the Central Bank of Nigeria (CBN) is selling to them.

However, the CBN is not selling at the official rate, so airlines are forced to adjust their exchange rates to avoid losing money.

The increase in airfares will affect both businesses and leisure travelers who rely on international air travel.

Travel agents predict that the cost of airfares will continue to rise following the exchange rate adjustment.

Already, a return ticket from Nigeria to London has risen from N350,000 to about N1.5 million to N1.8 million (for passengers paying in naira) in the last year.

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