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Domestic carriers hike fares, despite slash in JET-A1 pump price by local refinery
Domestic airlines operators have hiked the price of flight tickets across all local routes.
The increase comes barely one day after a local refinery had slashed the pump price of the JET A1 ( aviation fuel), as well as other incentives for the carriers amid their challenges in meeting operating costs in the country.
The flight ticket price increase by the domestic airlines affects the one-way tickets which has seen the cost rise to an average N200, 000 from its previous N100, 000 or thereabout.
The airlines have blamed the hike on the escalating cost of aviation fuel which has hovered around N3, 000 per litre at airports nationwide.
Oracle Intelligence checks on booking platforms show that while the United Nigeria Airlines fixed its minimum fare at around N200,000 for domestic routes, Air Peace raised its fares to about N211,600, while Ibom Air now charges roughly N200,300 on similar routes.
However, apart from the Ibom Air, UNA, and Air Peace, other operators have delayed in effecting price hikes, as checks showed that Arik Air still operated between N113,000 and N114,000 on the Abuja to Lagos route, while Aero Contractors tickets fall between N123,127 and N146,702 depending on the route.
ValueJet fares range from about N118,571 to N132,857 for the Lagos to Abuja flights.
Meanwhile, in a related development, the Dangote Petroleum Refinery, had earlier, Tuesday, announced a slight reduction in the price of Jet A1 from N1, 650 per litre from N1,750 per litre.
The refinery said the price adjustment is part of efforts to ease financial pressure on domestic carriers and ensure uninterrupted fuel supply across the country amid rising operational costs in the aviation sector.
In addition to the price cut, the refinery also introduced a 30-day interest-free credit facility for marketers and airline operators, backed by bank guarantees, while transitioning from a dollar-denominated pricing structure to a naira-based model.
The intervention comes at a time when industry stakeholders have continued to express concerns over the increasing cost of aviation fuel, which accounts for a significant share of airline operating expenses.
