Airfares may skyrocket as IATA sets the exchange rate at $1 to N770

By Seun Ibiyemi

There are strong indications that international airfares, especially on the Nigerian routes, may skyrocket once again as the International Air Transport Association (IATA) has, on Wednesday, pegged $1 to N770.

Already, the inability of international airlines to repatriate their ticket sales for over a year has contributed to the high airfares on Nigerian routes.

On the average, a six-hour flight on economy ticket jumped from barely N400,000 in 2021 to about N1.2 million in 2022 and 2023.

In the same vein, business class ticket has jumped to between N4 million and N6 million during the same period, depending on the airline and time of booking.

With the new benchmark, a N1.2 million economy ticket may rise to N2 million and above, while for the business class, the fares may rise to N7 million or more.

As at 2021, a dollar was being accessed at the official rate of N444 for one dollar by airlines. But it jumped to over N577 to a dollar in 2022.

With the new regime and the harmonisation of exchange rate by the new administration, a dollar was sold at the black market on Tuesday at N702.

A source close to one of the foreign airlines operating into Nigeria confided in our correspondent on Tuesday that the new regime of N770 to one dollar would kickstart today.

According to the source, IATA had already informed its member airlines of the new benchmark.

The source said ““Please, be informed that the IATA Rate of Exchange (IRoE) will increase from tomorrow (today).”