Nigeria-Europe Flight Prices Drop by Almost 50% With Naira Strengthening

There has been a stunning change in the Nigerian-European airfares for flights from Nigeria to Europe dropped by almost half, thanks to a strengthened naira and more competition for airlines.

The trend is concurrent with the improvement in the Nigerian economy, which is bringing fortunes to both commuters and airlines.

The reduction in airfares can be attributed, to a large degree, to the recent appreciation of the naira against the dollar, thus allowing airlines to offer more affordable fares.

In March 2024, the International Air Transport Association (IATA) re-set the ticket fare exchange rate for Nigeria from approximately N1,800 to N1,468 per dollar. This change has straightaway impacted airfare prices, making international travel more affordable for Nigerians.

Among the top drivers of fare reductions is fierce competition among airlines. Particularly, the new arrival in the market of Air Peace, a Nigerian airline, has rocked the market equilibrium by providing cheaper international fares.

Air Peace initiated Lagos-London-Gatwick flights in March 2024 at rates much lower than on foreign airlines. For instance, Air Peace is offering return Economy Class tickets as low as N1.2 million, which is a far cry from the high rates previously charged by foreign airlines.

As a result, other airlines have imitated, with one of them now charging as low as N1.6 million for a one-way ticket, which represents a 0.77% reduction from previous fare rates. The growing accessibility of domestic carriers has assisted in reducing total ticket prices, at the advantage of passengers who were once forced to pay high fees by foreign airlines.

CBN intervention has played a major role in further helping to decrease the cost burden for foreign airlines. CBN recently off-set much of the amount owed as trapped funds to overseas airlines, an exercise which helped mitigate financial stresses for such carriers. The foreign airlines have responded in kind by dropping their prices, with the larger airlines such as British Airways decreasing the price for a one-way ticket from Lagos to London from N3 million to roughly N1.7 million.

Also, the effort of the Nigerian government to ease the foreign exchange tightness, by unlocking over $136 million of stuck funds, has also contributed to making the price of air tickets cheaper. This move has been a major factor in stimulating confidence in Nigeria’s aviation industry and ushering in a competitive market.

This decline in air travel prices is a relief to passengers, who for a long time have had to deal with excessive travel costs. The strengthening of the naira, as well as the greater competition, has made it more economical for Nigerians to fly out of Nigeria. Travelers have been upbeat, noting that the reduction in air travel might boost international tourism and provide grounds for more Nigerians to explore business and education opportunities overseas.

But despite the dramatic cut in prices, experts caution that prices are still subject to fluctuation depending on the time of booking, travel dates, and class of service. Irrespective of these variables, the trend is one of cheaper international air travel for Nigerians.

The steady decline in the cost of air travel is a healthy omen for the Nigerian economy since it means a combination of a stable naira, greater competition between air carriers, and prudent government policy. As the international air business becomes more competitive, Nigerian passengers can anticipate paying less for transportation and having more options in global flight choices.