International Airlines Increase Fares By 18% Over Exchange Rate

About three weeks ago, International airfares from Nigeria to all global destinations were up by another 10 per cent, after an initial increase of eight per cent.

The development, which brings the total increase in airfares within the space of one month to 18 per cent, followed the upward review of the naira-dollar exchange rate international airlines use for the conversion of their airfares.

The review of the exchange rate is done by the International Air Transport Association, a Switzerland-based trade association representing over 290 airlines globally.

After almost two years of selling tickets at the rate N305/dollar, IATA three weeks ago reviewed the rate by eight per cent to N326/dollar.

But barely three weeks after the increase, the body has raised the exchange rate for the sale of tickets originating from Nigeria to N359/dolar.

A circular from IATA to accredited travel agents in Nigeria said the new exchange rate for the sale of tickets took effect on September 1, 2017.

The development has made international airfares out of Nigeria to increase by 18 per cent.

International airfares are quoted in dollar by foreign airlines. An increase in exchange rate means passengers buying flight tickets in the country will pay more in naira.

After the initial increase of eight per cent, It was gathered that foreign airlines flying into the country were not breaking even with the sale of tickets at 305/dollar.

Consequently, the carriers approached their trade body (IATA) in Switzerland, and the increase was consummated.

~ ThePunch