International Airline operators in Nigeria have adjusted their exchange rate to N551/$1 up from N462/$1, Nairametrics can confirm.
Checks from Nairametrics Aviation analysts confirmed that the airlines adjusted the exchange rate on their Global Distribution System, GDS, owned by Amadeus.
The GDS is one of the primary reservation tools for travel agents across the world including Nigeria.
Nairametrics first reported on Wednesday that the exchange rate at the official Investor and Exporter window sold for an intraday high spot rate of N551/$1.
Nairametrics could not immediately confirm from airline operators if this adjustment is at the instance of the central bank.
Investor & Exporter Window price
Nairametrics earlier reported that the exchange rate between the naira and dollar sold for as high as N551/$1 for the second straight day, on the official spot rate of the Investor and Exporter window of the FMDQ on Tuesday, the lowest on record.
However, checks by Nairametrics also indicate trade at the official investor and exporter window on Wednesday sold for as high as N544.5/$1 on the 22nd of March 2023., the highest on record and the third straight day rates sold higher.
The exchange rate between the dollar and naira often trades at intraday highs and lows in line with market realities however, the rate still closes at the official price preferred by the apex bank.
Nairametrics stated in its coverage on Wednesday that for trades to proceed at an exchange rate of N551/$2 it could suggest the market is now allowing trades to go through at this price.
It is however not an official indication of a devaluation of the exchange rate between the naira and the dollar as that would mean the closing prices also adjusting upwards. The closing price for the exchange rate between the dollar and naira was N461.5/$1.
What this means
The implication of the adjusted exchange rate on ticket sales in Nigeria is that airfares are likely to increase.
This is because international airline operators will need to adjust their prices to reflect the new exchange rate, which will result in higher ticket prices for passengers.
■ The increase in ticket prices may also lead to a reduction in demand for air.
■ The increase in ticket prices may also lead to a reduction in demand for air travel, especially among price-sensitive passengers.
This could lead to a decline in the number of passengers flying, which could negatively impact the airline industry in Nigeria.
Additionally, travel agents in Nigeria may also face challenges in booking flights for their clients, as the higher exchange rate could lead to issues with pricing and availability of flights. This could make it more difficult for agents to sell airline tickets and could impact their revenues.