The chairman of United Nigeria Airlines, Obiora Okonkwo, has opined that airlines do not benefit from airfare hikes.
Naijaonpoint reports that Okonkwo’s remark comes amid rising airfare in the country.
Okonkwo, during an interview on Arise Television on Monday, said that despite the hike, the airline‘s profit margin is below 5%.
According to him, those complaining about the airline hike bought their ticket at the last minute and cannot be compared with those who had purchased earlier.
He said, “I’ve seen what is going around different social media platforms, I realized that some of them are tickets that were bought on the travel day, at the last minute, and obviously, sometimes also some people compare.
“They put up a business or premium class ticket, and looking at the prices indicated there. Talk about them as if that economic ticket, as a matter of fact, in some other route, you can still buy a ticket for N100,000 Naira, N150,000 in a progressive pricing, which is actually the rule for the industry.
“So if you had bought your ticket earlier before then obviously it has a stable price. And affordable price is the same thing if you are going to London, America, wherever you are going to so for those who had planned their summer next year, 2026.
“If you bought your ticket earlier, it would be more affordable. Of the total cost of an air ticket, about 60 to 80% goes to third parties.
“Only around 10% is left to cover operational expenses, while the airline’s profit margin is less than 5%.”