Airline passengers to pay N300,000 more as exchange rate hits N803/$1

International airlines operating the Nigeria route have increased the price of flight ticket from N776.90 to N803.90 per dollar.

The information was disclosed by the International Air Transport Association (IATA) to stakeholders according to Leadership report.

The association said the adjustment is in response to the floating of the exchange rate of the naira.

The I&E window had reflected a depreciation to N803.9/$1 on Monday reaching its weakest level to date and the airlines currently adopted it.

Legit.ng earlier reported that the exchange rate between Nigeria’s currency, the naira, and the dollar depreciated to N803 per dollar at the Investor and Export (I&E) window on Friday, July 14, 2023. The fall is the lowest in history.

The exchange rate has fallen since Nigeria began floating the naira and moved above the N800 per dollar threshold for the first time.

Travel agencies are however advised to close out unfinished ticket sales by Monday in order to avoid possible rise in ticket prices.

Higher exchange rate calls for higher ticket fare

Susan Akporiaye, the president, National Association of Nigeria Travel Agencies (NANTA), said between Monday and Tuesday international airline tickets increased by N300,000 in response to the soaring exchange rate.

She noted that the I&E window determines the price of the ticket and not IATA. Hence, the ticket fare increases as exchange rate soars.

She said the fluctuation was expected because leaving the market means fluctuation would set in until market stabilizes.

She said: “The problem still remains that the higher the rate, the higher the price. We have advised our clients to hold on till tomorrow to get their tickets except it was an emergency.”