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parkisgold-zz

Aviation Sector Loses $500 Million in Revenue

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airlines trapped fund

CEM REPORT, AVIATION | 2022 is over by well over thirty days, companies are presenting their financial statements for the closed year. With several events that rocked the year, industries will record losses while some will record gains and others will be glad to maintain a flat income.

The aviation industry witnessed a series of events which led to a hike in fares in the year 2022, however, while we should be expecting profit from fare hike, the National Association of Nigeria Travel Agencies (NANTA) said they recorded losses of $500 million in the year 2022.

The umbrella body for travel agents operating in Nigeria also revealed that the sector recorded over 720,000 job losses.

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According to NANTA’s National President, Susan Akporiaye, at a media briefing held in Lagos on Friday, the recorded $500 million loss is due to a drop in ticket sales, as foreign airlines operating in Nigeria had blocked all low ticket inventories on their websites and continued to sell the highest inventories as passengers find it difficult to buy affordable tickets.

She added that airfares had risen over 400 percent to all international destinations noting that this is as a result of the $ 550 million trapped funds.

“The situation at hand has made Nigerian travellers patronise agents in other African countries.

“Only less than 30 per cent of tickets sold in Nigeria were done by local agents, with this, the Nigerian government is losing a lot of tax.

“To reduce the amount of money that would be trapped in Nigeria, the foreign airlines have also stopped local travel agents from issuing tickets emanating from other countries into Nigeria.”

The association’s national auditor, Yinka Olapade, revealed that the sector has recorded over 720,000 job losses due to the irregularities in the system, despite contributing over 3.6 per cent to the Gross Domestic Product (GDP) of the nation in 2021.

He also attributed the job loss to the trapped funds noting that less than 30 percent of tickets sold in Nigeria were done by local agents.

“Also, the shame of a parallel dollar monetary policy in the travel sector against established national naira monetary policy.

”We are also worried that none of our political parties has deemed it necessary to look at aviation economics, particularly, it’s homogeneous socio-economic and security opportunities.

They urged FG to follow up on the Bilateral Air Services Agreement (BASA) and other extant aviation laws which will open the economy to serious local and foreign investors.

“We advise the new government to follow up keenly on Bilateral Air Services Agreement (BASA) and other extant aviation laws which will open our economy to serious local and foreign investors; we are also remaining available for consultation.”

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