In response to the formidable challenge of high operating costs within the aviation industry, domestic airlines are resorting to an innovative strategy to enhance their financial viability. This strategic shift involves the augmentation of flight seat capacity, enabling a larger number of travelers to commute and subsequently boosting revenue. This fundamental alteration in approach reflects the ingenuity of airline operators in navigating the tumultuous financial landscape of the aviation sector.
Susan Akporiaye, the President of the National Association of Nigeria Travel Agencies, provided insights into this compelling development in a recent exclusive interview with InfoStride News. She elucidated that this strategic adjustment is driven by the need to contend with the adverse effects of foreign exchange scarcity, a persistent challenge within the industry. The decision to increase seat capacity serves as a coping mechanism, strategically adopted by airline proprietors to fortify the sustainability of their operations amidst declining revenue streams.
The primary objective of this transformation is to introduce a higher number of lower-priced seats into the market. While these seats may be more affordable for passengers, their introduction aims to achieve multiple objectives. Firstly, it is designed to elevate the average seats per departure, thereby increasing the overall occupancy of flights. Second, it seeks to alleviate per-seat costs for airlines, a critical factor in managing expenses and enhancing profitability. This multifaceted approach reflects a thoughtful response to the ongoing turbulence in the aviation sector.

Susan Akporiaye remarked, “Nothing has changed in the operating costs yet due to the fluctuating exchange rate, which is affecting our operating costs. The only thing that has changed is that airlines are beginning to release the lower seats now. Some of them have started releasing lower seats.”
She further elaborated on the historical context of this development, highlighting that airlines had previously refrained from selling lower-priced seat classes. Instead, they focused on marketing more expensive classes due to financial constraints related to trapped funds. However, the dynamic nature of exchange rates and the economic climate has led many airlines to reconsider their approach. In response to the elevated exchange rates, several carriers have chosen to release the lower-priced seats as a means of generating additional revenue, a vital component for their continued survival in the fiercely competitive aviation business.
Recent reports from InfoStride News have underlined the concerns of aviation experts regarding the potential negative ramifications of the surge in airfares within the industry. This upward price trend can be largely attributed to the challenges stemming from foreign exchange scarcity, among other contributory factors. Despite assurances from the Minister of Aviation and Aerospace Development, Festus Keyamo, that the government would address the challenges faced by the aviation sector, experts contend that ineffective implementation of policy regulations remains a persistent issue undermining the industry’s resilience.
In the midst of these challenges, Group Capt. John Ojikutu, the Chief Executive Officer of Centurion Security, has called for a comprehensive examination of the commercial aviation sector by relevant authorities. This assessment is crucial to determining the financial health and viability of all airlines operating within the industry. It is apparent that proactive steps and strategic initiatives are vital to maintaining the resilience and competitiveness of the Nigerian aviation industry in the face of dynamic economic and regulatory challenges.
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