• Domestic airline operators may further crash their airfares as Dangote Refinery is set to commence the sale of aviation
• The airline operators say that if the refinery crashes, the price of the commodity will be reflected in ticket prices
• The airlines said that the aviation fuel price has remained relatively steady due to the stability in the exchange rate

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

There are vital signs that domestic airlines may further crash their airfares for passengers due to the imminent supply of aviation fuel from the Dangote Refinery.

Domestic airlines were forced to raise their ticket prices due to the increased cost of aviation fuel and the volatility of the exchange rate.

12 airlines set to crash prices

The 12 airlines include Air Peace, Aero Contractors, Arik Air, Max Air, Azman, Dana Air, Ibom Air, Green Africa, Overland, Rano Air, ValuetJet, and United Airlines.

The airlines agreed on February 20, 2022, to increase airfares by 100% to meet operational costs.

With Dangote Refinery set to begin the sale of aviation fuel, passengers might see a crash in airfares.

Vanguard reports that the Managing Director of Aero Contractors, Ado Sanusi, said that despite the steady price of aviation fuel, airlines are expecting further price drops.

The Aero Contractors boss said the operators need to be made aware of the refinery where airlines buy aviation fuel, but that what they consider is the price, saying if there is a crash in price, it will impact the industry positively.

He said:

He stated that the imminent supply of aviation fuel from the Dangote refinery would result in a price drop, depending on how much the refinery sells the product to the airlines.

Reduced passenger volume forces airfares to drop

The development follows another report by Legit.ng that airline operators crashed airfares due to a drop in passenger volume.

In February, Major domestic carriers, including Air Peace, Dana Air, and Ibom Air, offered economy travel tickets for most locations for N140,000. This was a significant increase from the average of N89,000.

But things have changed now that most airlines are trying to draw customers in by cutting their fares dramatically. Daily Sun reported that Dana Air offers economy tickets on its website for as little as N64,800 for people who want to fly from Lagos to Abuja on April 30.

New airfares by airlines

For most February time slots, Air Peace charged N143,000 for economy class seats on the Lagos-Abuja route, which included flights from Abuja to Asaba.

The same N143,000 charge applied to those traveling in economy class from Calabar to Lagos, Lagos to Benin, and Lagos to Anambra during that time. ValueJet also charged the same price for economy class tickets on the Lagos-Abuja route.

However, recent data from the airlines' websites indicates a sharp decline in airfare. Economy class tickets on Air Peace are available for N85,000 for travel on April 30th on the Lagos-Abuja route for all time slots.

The same prices apply for flights from Abuja to Asaba on the same day. Economy class tickets from Calabar to Lagos now cost N100,000, while flights to Benin and Anambra from Lagos have decreased to N85,000 and N100,000, respectively.

Further airlines crash

In February, United Nigeria Airlines priced economy class tickets for all specified itineraries leaving from Abuja at N142,500. This included travel by air to Bayelsa, Lagos, Sokoto, Enugu, and Anambra.

However, starting April 30th, several destinations have seen a considerable drop in price. For example, there has been a reduction of N42,500 in the cost of a flight from Abuja to Anambra to N100,000. Additionally, passengers flying from Lagos to Kano will prepare to spend N70,000, which is N72,500 less than the February fare.

On the Lagos-Uyo route, Ibom Air also saw a drop in pricing; the current cost is N96,000, down from N150,000 in March.

Air Peace announces date for commencement of Lagos-US flights

Legit.ng earlier reported that the Air Peace chief executive officer, Allen Onyema, has stated that the airline is willing to add more flights to the seven daily flights Air Peace now operates from Nigeria to Gatwick Airport in the United Kingdom.

He said that Air Peace has set its sights on growing its global reach, especially with plans to start operating flights from Abuja to New York and Houston by the end of 2024.

In addition, Onyema disclosed the airline's desire to purchase more planes to fund its aggressive growth strategies, including acquiring three Boeing 777s for prospective lines to Houston and New York.

Source: Legit.ng

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