•  Passengers reduce holiday, casual trips
  
• Airlines cut weekly frequencies to save cost
  
• Experts blame decline on naira devaluation, fare increase

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The current economic headwinds in Nigeria have caused a significant decline in passenger traffic at the Murtala Mohammed International Airport (MMIA), Lagos and the Nnamdi Azikiwe International Airport, Abuja.

LEADERSHIP Sunday investigation showed that outbound foreign travel dropped by over 60 per cent in Nigeria this year.

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It was gathered that the continuous high rates of foreign currencies, especially the United States dollar, had made foreign travel very expensive for Nigerians, who usually embarked on overseas trips for holidays and weekend visits, which aviation stakeholders described as “frivolous or casual travels.”

Statistics from the Nigeria Civil Aviation Authority (NCAA) and other sources in the sector showed that in 2023, 2.04 million Nigerians travelled out of the country, but recorded a drastic decline in 2024.

According to insider sources, the number of passengers reduced from 2.04 million in 2023 to a paltry 816,000 from the first quarter (Q1) to third quarter (Q3), 2024, representing a 60 per cent drop in the load factor.

The statistics showed that a total of 2,856,000 million passengers travelled in 2023 and 2024, with a decline of 1,226,000, representing a 60 per cent fall in the current year.

Also, travel agents attributed the decline to the over 600 per cent increment in the prices of foreign air tickets in the last few years.

It was gathered that an economy seat to the United States of America that was N350,000 prior to the floating of the naira in May 2023 rose to between N2.7 million to N3 million, thereby, making foreign travel a necessity and no more a fun.

The above fare for US routes increased by N2,650,000, representing 57 per cent increase for air tickets.

Although, the president of the Association of Foreign Airlines Representatives in Nigeria (AFARN), Dr Kingsley Nwokoma, who corroborated LEADERSHIP Sunday findings, said foreign travels declined by over 40 per cent due to the nation’s economic conditions, the available data indicated 57.14 percent.

Nwokoma said holiday makers now seek cheaper alternatives because foreign travel is now a luxury.

He said, “It is true, traveling has declined by 40 to 50 per cent. The decline is due to poor showing of every other sector in Nigeria. It’s not limited to only the flying public, you need money to buy air tickets before you can go anywhere and holiday makers are now looking for cheaper alternatives such as going for vacation in the West Coast, Nigeria and when you go within West Coast buses or in their vehicles.

“It’s unfortunate, this is where we are, but we hope things get better because it’s a chain and it’s not limited to aviation. We hope things return to normal where families can all travel for summer.

“For instance, for a family of four to buy tickets, you will pay through your nose and parents have school fees and other important bills to pay. Even for local flights, from Lagos to Abuja is over N200,000 and to the South East, it is over N300,000; this is a reflection of our economy.”

Similarly, the group managing director, Dees Travels and Tours Limited, Daisi Olotu, said the high exchange rate had compounded the fortunes of outbound foreign airlines in recent times.

Olotu said, currently, only a few Nigerians can afford foreign travels due to the high cost of air tickets, adding that overseas travels are now a necessity and no longer for pleasure.

“Yes, it (foreign travel) has gone down by 40 per cent,” he said in a response to an enquiry by LEADERSHIP Sunday.

Olotu said, “No doubt about the drop because a look at any of the foreign airlines, you will see that they are half empty out of Nigeria, though this is low season.

“Also, the exchange rate is high and the airlines are charging in dollars. For instance, $1,000 is about N1.7 million with some fraction so that’s why it’s only a few people that can afford travelling.

“Dollar is not legal tender in Nigeria. So, we pay for goods and services in naira but with the exchange rate, if you are giving a fare of $1,500 that means you are paying about N2 million upward and only a few Nigerians can afford it.”

Olotu therefore urged the government to resuscitate the nation’s tourist sites, saying family travel and expenses now cost over N20 million.

“I will tell you that if it’s not important that you travel, you stay back and that’s why we are advising the government to work on our tourist sites because if they are okay, holidaymakers will stay back. A family of four will need N20 million to travel for holiday. Currently, travelling is on the high side and only a few can afford it.

“Travelling has gone down and the way out is that if the naira should appreciate, the load factor will go up. It’s only the government that can arrest this situation. If the exchange rate comes down, airfare will be reduced and the market will boom but as long as naira continues its depreciation, the people will be impoverished, you can imagine one person spending an average of N2.7 million to N3 million on air ticket to the United States,” Olotu lamented.

Also, the director of research at Zenith Travels and Tours, Olumide Ohunayo, argued that since some companies had posted losses or closed down, it had affected corporate travel.

He also attributed the drop in passenger traffic to the fall of the naira and the removal of fuel subsidy which have reduced the spending power of Nigerians and their ability to travel.

“The airline industry was recovering from the COVID-19 effects, when the depreciation of naira and removal of subsidy came and affected the purchasing power of Nigerians.

“We have more cargo moving than passengers now. The high inflation rate has also impacted travels. This can, however, be reversed if the government provides some palliatives to cushion effects of the subsidy.

“If we can encourage domestic airlines to fly more international routes, the traffic will increase. It is very key that domestic airlines begin to participate in international flight operations. We must provide more capacity on international routes,” he added.

Passengers Reduce Holiday, Casual Trips Over High Fares

A visit to the Nnamdi Azikiwe International Airport, Abuja, the ever-busy international wing of the airport shows that the airport is now a shadow of itself as passenger traffic has reduced drastically.

An airport official, who spoke to our correspondent on the condition of anonymity because he was not authorised to do so, said the international wing used to be busy, especially at the weekends.

The official said some passengers would travel on Friday and come back on Sunday or Monday morning to resume their work, “but right now, such frivolous trips for weekends hardly happen again.”

The official said some airlines operating international trips had reduced their frequencies per week to have more passengers when they are travelling.

Some of the airlines flying the international routes include Air Canada (AC), Lufthansa (LH), Air Peace, Qatar Airways (QR), Uganda Airlines (UR), Virgin Australia (VA), Turkish Airlines (TK), KLM (KL), Air France (AF), British Airways (BA), Ethiopian Airlines (ET), EgyptAir, ASKY Airlines, RwandAir and Emirate Airlines, Air Cote d’Ivoire.

Airlines such Uganda Airlines, which launched its direct Entebbe-Abuja operations in September, 2024, operates twice-weekly flights from Entebbe International Airport to Nigeria’s capital, Abuja.

Kano Airport Shows Resilience, Records 13 Flights Weekly

At the Aminu Kano International Airport, aviation officials said flights still remain regular and the passenger traffic is high.

A senior official of the Federal Airports Authority of Nigeria (FAAN) who sought anonymity said only drug pushers have shunned the airport because of the tight security in the facility.

He said, “The patronage at the Kano Airport has not changed. The only international flight that has stopped coming to Kano is KLM. This is because the airline has suspended its Kano operations.

“The weekly international flights are carried out by EgyptAir, Ethiopian Airlines, Saudi Air and Qatar Air. They arrive in Kano with a large number of passengers and also fly out with large numbers as well.

“For instance, Saudi Air comes with about 300 to 400 passengers at a go and leaves with over 200 passengers. The same goes with EgyptAir. Saudi Air comes to Kano three times weekly while Egypt Air and Ethiopian Airlines come to Kano five times a week each.

“The truth is that even with the current economic hardship, patronage has not reduced at all. Most of those patronising the airlines are normal passengers.”

Last updated on November 15th, 2024 at 12:28 am