ALERT: Foreign airlines to increase fares over FX policy

The new forex regime will negatively affect flying passengers as tickets fare will go up, the association of foreign airlines representatives of Nigeria (AFARN) said on Monday.

Kingsley Nwokoma, president of AFARN, told NAN that the new flexible foreign exchange policy introduced by the federal government could lead to increase in fares.

Last week, CBN announced a floating exchange rate regime aimed at making foreign currencies more accessible in the country.

With the move, the apex bank nullified the official exchange rate regime of N197 to the dollar, but Nwokoma said the development could have a negative impact on passengers travelling abroad.

“Apparently, it is going to affect the airlines and on the long run; those into the import and export businesses will also be affected,” he said.

“For instance, if the airline’s ticket rate is about N200 to the dollar, it means we are still using the old CBN rate.

“Now that everything is at par and parallel, we will be looking at between N350 and N360 and above depending on market demands.

“In essence, it will affect aviation generally. For example, the price of ticket will apparently increase and the cost of importing and exporting of cargoes will also increase.”

He said the cost will go back to the flying public and importer and exporter of cargoes in and out of the country.

Nwokoma, therefore, pleaded with the federal government to exempt its members from the new policy.