Domestic Airlines Gear Up for Airfare Reductions as Dangote Introduces Aviation Fuel Sales”

Domestic airline operators in Nigeria are poised to slash airfares following the impending availability of aviation fuel from Dangote Refinery. This development signals a potential decrease in ticket prices, as airline operators look to pass on the benefits of lower fuel costs to passengers.

The decision to lower airfares comes after a period of increased ticket prices due to rising operational expenses, including the cost of aviation fuel and exchange rate fluctuations. Notably, 12 major airlines, including Air Peace, Dana Air, and Arik Air, had previously raised airfares by 100% to cover these expenses.

With the prospect of Dangote Refinery entering the aviation fuel market, airlines anticipate a significant reduction in fuel costs. Ado Sanusi, Managing Director of Aero Contractors, highlighted the potential impact of this development, emphasizing that lower fuel prices would positively affect the industry.

The move towards reduced airfares also follows a decline in passenger volume earlier in the year, prompting airlines to adjust prices in a bid to attract more customers. Major carriers such as Air Peace, Dana Air, and Ibom Air have already begun offering discounted fares, with economy tickets available for as low as N64,800 for select routes.

Furthermore, recent data from airline websites indicates a noticeable decrease in airfare across various routes. For instance, economy class tickets on Air Peace for the Lagos-Abuja route are now priced at N85,000, down from N143,000 previously. Similar reductions can be observed for flights to other destinations, reflecting the industry’s efforts to make air travel more affordable for passengers.

As airlines prepare for further reductions in airfares, passengers can expect increased accessibility to air travel within Nigeria. This development aligns with broader efforts to stimulate economic activity and promote travel as the aviation sector continues to recover from the impact of the pandemic.

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