Chairman of the United Nigeria Airways, Obiora Okonkwo, has stated that airways don’t profit from hikes in airfare, saying third events take chunk of the features.
Okonkwo made the claims on Monday throughout an interview on a nationwide tv.
His comment is coming in opposition to the backdrop of escalated airfare within the nation.
He stated, “I’ve seen what goes round totally different social media platforms, I realised that a few of them are tickets that had been purchased on the journey day, on the final minute, and clearly, generally additionally some folks evaluate.
“They put up a enterprise or premium class ticket, and looking out on the costs indicated there. Discuss them as if that {economic} ticket, as a matter of truth, in another route, you possibly can nonetheless purchase a ticket for N100,000 Naira, N150,000 in a progressive pricing, which is definitely the rule for the business.
“So if you happen to had purchased your ticket earlier earlier than then clearly, it has a steady value. And inexpensive value is similar factor if you’ll London, America, wherever you’ll so for individuals who had deliberate their summer time subsequent yr, 2026.
“In case you purchased your ticket earlier, it will be extra inexpensive. Of the whole value of an air ticket, about 60 to 80% goes to 3rd events.
“Solely round 10% is left to cowl operational bills, whereas the airline’s revenue margin is lower than 5%,” he stated.