{"id":275278,"date":"2023-06-20T07:41:32","date_gmt":"2023-06-20T06:41:32","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=275278"},"modified":"2023-06-20T07:41:32","modified_gmt":"2023-06-20T06:41:32","slug":"airfares-skyrocket-as-exchange-rate-hits-n702","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2023\/06\/20\/airfares-skyrocket-as-exchange-rate-hits-n702\/","title":{"rendered":"Airfares skyrocket as exchange rate hits N702\/$"},"content":{"rendered":"

As the exchange rate for ticket prices reaches N702\/$, findings show that airfares on Nigerian routes to various locations in Europe, North America, the Middle East, and other foreign cities have skyrocketed.<\/p>\n

The development came just a week after the Central Bank of Nigeria floated the naira and directed commercial banks to sell foreign exchange at market rates.<\/p>\n

The CBN last week introduced new forex guidelines aimed at unifying the nation’s exchange rate as part of its efforts to end multiple exchange rates that have caused several investors to leave Nigeria.<\/p>\n

Among others things, the CBN said all forex windows should be collapsed into the Investors &Exporters Window.<\/p>\n

About 24 hours after the decision, the naira traded at 664.04\/dollar at the I&E window. Two days later, the local currency closed at 702.19\/dollar at the close of business on Thursday<\/a>.<\/p>\n

Following the development, findings by newsmen on Monday revealed that exchange rate adopted by the International Air Transport Association for ticket pricing in Nigeria rose to N702\/dollar.<\/p>\n

In previous months, the exchange rate adopted by international airlines for ticket pricing had risen consecutively from about N445\/dollar to about N660\/dollar about two weeks ago.<\/p>\n

However, the latest move by the CBN has made IATA to adopt the exchange rate on the I&E Window.<\/p>\n

Prior to the latest development, IATA used to adopt NAFEX rate published on the FMDQ Exchange.<\/p>\n

The development came as summer travel season began a week ago with ticket prices rising by 25 per cent.<\/p>\n

Travel operators told the Punch correspondents that ticket prices had gone up significantly with several operators raising concerns the hike in the exchange rate could mar the summer travel plans<\/a> of many Nigerians.<\/p>\n

The President of the National Association of Travel Agents of Nigeria, Susan Akporiaye, while reacting to the current development, expressed disappointment lamenting that passengers would suffer the most from the increment.<\/p>\n

\u201cFares will definitely increase and passengers have to pay more. As a result, Passengers won\u2019t travel as much as they should and this will affect travel agents,\u201d she said.<\/p>\n

Also, the Chief Executive Officer, Corporate Travels, Mr. Akande Diran, while reacting, said, \u201cAround mid-June, ticket prices always go up. We call it peak period. This is so because many people often go on vacation during this period. Apart from this, the rising exchange rate will lead to higher ticket prices.\u201d<\/p>\n

The development came amid difficulty in repatriating millions of dollars of ticket sale proceeds by foreign airlines in Nigeria.<\/p>\n

However, experts believe the latest move by the CBN will ease the process.<\/p>\n

Regional Vice President, Africa and Middle East, IATA, Kamil Alawadhi, said the trapped funds had risen to $812m as of April 2023. He spoke at the IATA Annual General Meeting held in Istanbul two weeks ago.<\/p>\n","protected":false},"excerpt":{"rendered":"

As the exchange rate for ticket prices reaches N702\/$, findings show that airfares on Nigerian routes to various locations in Europe, North America, the Middle East, and other foreign cities have skyrocketed. The development came just a week after the Central Bank of Nigeria floated the naira and directed commercial banks to sell foreign exchange […]<\/p>\n","protected":false},"author":9,"featured_media":275281,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"https:\/\/punchng.com\/airfares-skyrocket-as-exchange-rate-hits-n702\/","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored 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