International Flight Tickets To Rise By 9.5% As Agencies Adopt New Exchange Rate

Ticket prices will soon rise for international travels after travel agencies were encouraged to exchange their naira at N460 per dollar, from N420 with effect from Tuesday July 13.

International carriers issue tickets using exchange rates issued on the Global Distribution System.

The development comes amidst the country’s foreign exchange setbacks.

The Central Bank of Nigeria recently adjusted the official rate to harmonize with the Nigerian Autonomous Foreign Exchange Rate (NAFEX) rate of N410 from N379 per dollar.

International carriers had set their rate of conversion around N420 despite the price adjustment by the apex bank.

But in an email, travel agencies were told that the rates were “going from N420.86 to N460 per dollar on GDS.”

According to Nairametrics, they were also advised to “issue all pending tickets” using the new rates.

The rates are worsening at the parallel market which is selling at N505 per dollar.

At an average price of $629 it usually cost a traveler N264,720.94 to fly to Dubai.

However, with the new exchange rate, it will cost a traveler N289,340.

This means prices will increase by 9.5 per cent for international trips.