As part of their strategies to combat the high operating costs within the aviation industry, domestic airlines have taken measures to increase the number of available flight seats.
This expansion allows for a greater number of travelers to utilize their services, ultimately boosting their revenue.
In an exclusive interview, Susan Akporiaye, the President of the National Association of Nigeria Travel Agencies, acknowledged that this move is a response to challenges such as foreign exchange scarcity.
Airline owners have resorted to these coping mechanisms in order to enhance the capacity of their airlines, especially as revenue has been on the decline.
She further explained that while the newly introduced lower-priced seats may seem like a cost-saving option for passengers, their primary purpose is to increase the average number of seats filled on each flight. This optimization is aimed at reducing the per-seat operating costs.
Despite these efforts, the aviation industry still grapples with persistently high operating costs due to the fluctuating exchange rates. However, the recent change in strategy is notable because airlines have begun releasing more of the lower-priced seats.
Previously, they had limited the availability of cheaper seats, opting to focus on selling the more expensive ones due to financial challenges.
Now, with the exchange rates on the rise, many carriers are releasing these lower-cost seats to generate additional revenue and maintain their presence in the aviation business.
Aviation experts have voiced concerns about the potential adverse effects of the recent airfare increases, which are a result of foreign exchange scarcity and other industry challenges.
While promises have been made by the Minister of Aviation and Aerospace Development, Festus Keyamo, to address sector issues, experts point out that poor implementation of policy regulations is an ongoing hindrance to the industry’s progress.
In the midst of these concerns, Group Capt. John Ojikutu, the Chief Executive Officer of Centurion Security, has called for a comprehensive assessment of the commercial aviation sector by relevant authorities.
Such an examination would help determine the financial health of all airlines operating within the industry.
