Competition on the popular Lagos-London route has intensified, with foreign airlines significantly reducing fares. British Airways now offers economy class return tickets at N1.6 million, a million naira less than Air Peace’s N2.6 million. Ethiopian Airlines charges N1.66 million, Asky N1.7 million, Qatar Airways N1.9 million, and Royal Air Maroc N2.4 million, all below Air Peace’s rate.
In contrast, Air Peace offers the most competitive business class return ticket at N3.8 million. This is lower than Royal Air Maroc’s N4.9 million, Turkish Airlines’ N5.4 million, Ethiopian Airlines’ N5.8 million, British Airways’ N6.4 million, and Qatar Airways’ N6.9 million.The price war follows Air Peace’s entry into the Lagos-London market on March 30, 2024, which led to a general decrease in fares. Initially, Air Peace’s economy tickets were set at N1.2 million, prompting other airlines to reduce their prices. The International Air Transport Association (IATA) exchange rate for ticket sales in Nigeria has also dropped from nearly N1,800 to N1,505 per dollar, contributing to the reduced fares.
Current one-way economy class fares to London show British Airways at N605,000, Qatar Airways at N870,000, Ethiopian Airlines at N892,000, Royal Air Maroc at N983,000, Air Peace at N1,010,000, Asky at N1,150,000, and Turkish Airlines at N1,190,000. Business class fares remain lowest with Air Peace at N2.5 million, followed by Royal Air Maroc at N2.6 million, Ethiopian Airlines at N3.6 million, Qatar Airways at N3.7 million, and Turkish Airlines at N3.9 million. British Airways’ premium economy costs N2.7 million and business class N7.6 million.
Industry analyst Olumide Ohunayo attributes the fare reductions to Air Peace’s market entry and the anticipation of Emirates Airlines’ arrival in October, which could further escalate competition. He advises Air Peace to remain flexible and responsive to market dynamics, offering competitive amenities and services to maintain its market share.
Source: Business Day