Airfares skyrocket as exchange rate hits N702/$

Airfares for flights from Nigeria to various destinations around the world have significantly increased due to the exchange rate for ticket pricing reaching N702/$. This comes after the Central Bank of Nigeria floated the naira and instructed commercial banks to sell foreign exchange at market-determined rates. The aim was to unify the nation’s exchange rate and eliminate multiple rates that have deterred investors. As a result, the International Air Transport Association (IATA) has adopted the exchange rate of N702/$ on the Investors & Exporters Window, causing ticket prices to rise.

The increase in airfares has raised concerns among travel operators, who fear it may affect the summer travel plans of many Nigerians. The President of the National Association of Travel Agents of Nigeria expressed disappointment, noting that passengers would be the most affected by the price hike. The Chief Executive Officer of Corporate Travels also mentioned that ticket prices usually rise during the peak period of mid-June when many people go on vacation. Additionally, the rising exchange rate will contribute to higher ticket prices.

Foreign airlines operating in Nigeria have faced difficulties repatriating millions of dollars in ticket sale proceeds. However, experts believe that the Central Bank’s recent measures will alleviate this issue. According to the Regional Vice President of IATA, the trapped funds have reached $812 million as of April 2023.

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