The Managing Director of Aero Contractors, Ado Sanusi, has stated that due to the current exchange rate, one-way ticket prices should now exceed N130,000. Sanusi highlighted the aviation industry’s reliance on the US dollar, making it challenging to mitigate the impact of the falling Naira.
Sanusi commented, “When the dollar was N460, we were selling a Lagos-Abuja ticket at N65,000. With the dollar now being twice that value, we should be selling the same ticket at N130,000. It is even in the regulator’s interest to ensure ticket prices correspond to the dollar’s rate. A one-hour flight should be priced between $150 to $200.”
He emphasized the limited control the industry has over costs, explaining, “We don’t manufacture aircraft, nor do we refine oil. The only aspect we can manage is our manpower. As the dollar rises, even basic components of an aircraft, like bolts, have to be imported. Fuel and parts are also sourced from outside the country.”
The current economic climate poses challenges for the aviation industry, with the devalued currency impacting various aspects of operations. The increase in ticket prices reflects the shared struggle faced by airlines and travelers alike.
