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Airfares, Road Transport Fares Rise Over 40% in A Year – NBS Reveals

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Air Peace 2 - Investors King

The Nigerian Bureau of Statistics (NBS) has revealed a surge in the Airfares and bus commuters in various parts of the country in the last one year.

Investors King obtained an NBS report titled, ‘Transport Fare Watch for April 2022′ which covers the bus journey within the city per drop constant route; bus journey intercity, state route, charge per person; airfare charge for specified routes single journey; journey by motorcycle (Okada) per drop; and waterway passenger transport.

The reports reveal that on a month-to-month basis, the average fare paid by air passengers for specific routes on a single voyage grew by 18.57 percent from N46,810.62 in March 2022 to N55,501.49 in April 2022. This means that the fare increased 52.44 percent year over year from N36,409.46 in April 2021.

The average intercity bus fare paid by commuters increased by 8.75 percent from N3,270.94 in March 2022 to N3,557.15 in April 2022. On a year-over-year basis, however, it increased by 45.38 percent from N2,446.86 in April 2021. Similarly, the average bus ticket paid by commuters within the city each drop grew by 6.39 percent month over month, from N536.35 in March 2022 to N570.64 in April 2022. On a year-on-year basis, this rose by 47.80% from N386.10 in April 2021.

A different section of the report states that the average fare paid by commuters for motorbike trips grew by 8.03 percent month over month, from N395.12 in March 2022 to N426.84 in April 2022. The ticket increased by 54.48 percent year over year from N276.30 in April 2021. Furthermore, from N900.84 in March 2022 to N951.93 in April 2022, the average fare paid for water transportation (waterway passenger transportation) grew by 5.67 percent month over month. This increased by 16.06 percent year over year from N820.23 in April 2021.

On state profile analysis, Taraba recorded the highest air transport charges (for specified routes single journey) in April 2022 with N65,000.00, followed by Kogi with N64,258.91, while Kano recorded the least with N50,000.00.

Analysis by zone also showed that the North-Central recorded the highest airfare in April, 2022 with N57,552.54, followed by the North-East with N56,800.16, while the South-East had the least with N53,402.58.

Investors King suggests the increase in prices is linked to recent issues faced by local airlines, ranging from energy price spikes to a lack of access to foreign money.

About four months ago, Investors King gathered that the airline tickets will rise as a result of the increase in aviation fuel which was N400 per litre, and other operational costs which include airport charges.

Dr. Obiora Okonkwo, the Chief Executive Officer of United Airlines explained that domestic airlines were operating in a difficult environment.

He said “the first foreign exchange transaction we did when we started was N340. But now, when it is available, it is N450 but when it is not available, the alternative black market cost is N570. It might surprise you to know that despite such increase, today, because of the market situation, you still can buy your ticket at N20,000 or N21,000.

“What this means is that since all the airlines are buying from the same market, any ticket at this rate is being subsidised by the airlines. Aviation fuel, depending on how it is applied in the aircraft, can easily become 30 to 40 per cent of the cost component of your operations.”

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Ethiopian Airlines Expands African Reach with a New Port Sudan Service

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Ethiopian Airlines is delighted to announce the launch of a daily flight service to Port Sudan, Sudan, commencing on October 15, 2024.

This strategic expansion further strengthens Ethiopian’s commitment to enhancing connectivity across the African continent and beyond, fostering regional socio-economic growth and facilitating trade and tourism.

The new route will provide seamless travel options for passengers traveling between Ethiopia and Sudan, as well as connecting travelers from across the vast Ethiopian Airlines network to this significant Red Sea port city.

The introduction of this service underscores Ethiopian’s dedication to serving the evolving needs of the African market and contributing to the continent’s economic development. By connecting Port Sudan to
its extensive global network, Ethiopian Airlines aims to unlock new opportunities for businesses, travelers, and communities, promoting cross-border collaboration and cultural exchange.

The inaugural flight, ET350, will depart from Addis Ababa at 11:00 and arrive in Port Sudan at 12:15. The return flight, ET 351, will leave Port Sudan at 14:15, arriving back in Addis Ababa at 17:30. Both flights will be operated by the state-of-the-art Boeing 737 Max aircraft, ensuring a comfortable and reliable journey.

“We are pleased to connect our Sudanese brothers and sisters from Port Sudan to Addis Ababa,
and to the rest of the world using our extensive global network,” says Mesfin Tasew, Group CEO of Ethiopian Airlines.

“By introducing daily flights to Port Sudan, we are bridging cultures and economies. This expansion is a testament to our unwavering dedication to serve our continent and its people, driving progress and prosperity through the skies.”

With the inclusion of Port Sudan, Ethiopian Airlines expands its network to 66 destinations within Africa. The inauguration of this new route emphasizes Ethiopian Airlines’ dedication to broadening its presence throughout Africa, while simultaneously enhancing connectivity for both business and leisure travelers.

Port Sudan, a city strategically situated along the Red Sea, acts as an essential center for commerce and economics in the region. This development offers a gateway to the diverse cultural
history and burgeoning economic prospects of Sudan.

Ethiopian Airlines invites passengers to experience the warmth and hospitality of its newest destination, Port Sudan. Book your journey today and be part of the growth story that is Ethiopian Airlines – the New Spirit of Africa.

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U.S. Remains the World’s Most Powerful Travel & Tourism Market

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The World Travel & Tourism Council (WTTC) today launched its 2024 Economic Impact Trends Report, which has revealed the U.S. as the world’s most powerful Travel & Tourism market, contributing a record-breaking $2.36 TN to the nation’s economy last year.

Despite the slow return of spending from international travellers, the U.S. keeps pole position, with almost double the economic contribution of its nearest rival.

Following a record-breaking year for Travel & Tourism, the sector continues to be the backbone to many country economies, while supporting millions of jobs globally.

The latest report from the global tourism body reveals China as the world’s second most powerful market with a GDP contribution of US$1.3 TN in 2023, underscoring its impressive rebound, despite the late reopening of its borders.

Germany secured the third spot with a US$487.6 BN economic contribution, while Japan, which in 2022 was in 5th place, jumped up to 4th position, contributing US$297 BN.

The United Kingdom completes the top five contributing US$295.2 BN.

France, the world’s most popular destination retained its sixth position with a contribution of US$264.7 BN, followed closely by Mexico at US$261.6 BN, showcasing its continued appeal as a major tourist destination.

India came in eighth, rising from a previous 10th position, with US$231.6 BN, marking a notable improvement and highlighting its growing influence in the sector. Italy and Spain complete the top 10, contributing US$231.3 BN and US$227.9 BN, respectively.

However, over the next decade, WTTC predicts China will become the biggest Travel & Tourism market with India moving up to 4th position.

These shifts illustrate the dynamic nature of the global Travel & Tourism sector, with emerging markets gaining ground and traditional powerhouses maintaining their strongholds.

The report also highlights the countries experiencing the highest annual growth rates in their Travel & Tourism contributions to GDP.

In 2023, China’s sector surged led with an astounding year on year growth of 135.8%, while other Asian countries, such as Hong Kong SAR, Malaysia, and the Philippines recovered soon after the removal of travel restrictions.

Julia Simpson, WTTC President & CEO, said: “As we look forward to a record-breaking 2024, it’s clear that Travel & Tourism is not only back on track, but also set to achieve unprecedented growth.

“We will continue to prioritise sustainability and inclusivity, ensuring that this growth benefits everyone and protects our planet for future generations. The sector’s resilience and potential for innovation continues to drive us forward.”

According to the report, many key destinations will profit from a surge in international spending this year compared to pre-pandemic levels, with Saudi Arabia, up 91.3% compared to 2019%, Türkiye (+38.2%), Kenya (+33.3%), Colombia (+29.1%) and Egypt (+22.9%) leading the way.

Globally international visitor spending is set to grow by nearly 16% to reach US$1.9 TN, while domestic tourists are projected to spend more than ever before, reaching US$5.4TN, an increase of 10.3% over 2019 levels.

Travel & Tourism investment grew 13% in 2023 to reach more than US$1TN, with a return to pre-pandemic levels anticipated by 2025.

However, high interest rates around the world could create challenges for future investment. It is therefore crucial that the public and private sectors work together to innovate to ensure the continual strengthening of this vital sector.

The report also highlights the sector’s commitment to sustainability, showcasing the decoupling of growth from greenhouse gas emissions and the increasing opportunities for women, young people, and marginalised communities.

Technological advancements, particularly in AI, are expected to further enhance the travel experience and drive future growth.

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Red Line Rail Starts Operations Ahead of Christmas

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The Lagos Red Line Rail has commenced partial passenger operations as part of a test run for the new rail project.

According to a statement released by Lagos State Governor Babajide Sanwo-Olu, the Red Line will operate four daily trips between Oyingbo and Agbado.

The service starts from Oyingbo at 8:30 am and will be making a stop at Yaba, Mushin, Oshodi, Ikeja, Agege, and Iju before arriving at Agbado by 9:37 am.

Below is the trip schedule:

AM Trip 1: Oyingbo (8:30), Yaba (8:37), Mushin (8:45), Oshodi (8:54), Ikeja (9:05), Agege (9:15), Iju (9:27), Agbado (9:37).
AM Trip 2: Agbado (10:30), Iju (10:37), Agege (10:49), Ikeja (10:59), Oshodi (11:10), Mushin (11:19), Yaba (11:27), Oyingbo (11:37).
PM Trip 1: Oyingbo (12:40), Yaba (12:47), Mushin (12:55), Oshodi (13:04), Ikeja (13:15), Agege (13:25), Iju (13:37), Agbado (13:47).
PM Trip 2: Agbado (14:50), Iju (14:57), Agege (15:09), Ikeja (15:19), Oshodi (15:30), Mushin (15:39), Yaba (15:47), Oyingbo (15:57).

This partial operation aims to assess the Red Line’s safety, reliability, and efficiency.

Once fully operational, the Red Line is projected to run 20 trips daily and transport about 500,000 passengers per day.

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