Major Airlines Are Flying Away From Nigeria. United Airline closed its only Nigeria route between Houston and Lagos, at the end of June.
United Airline had been underachieving on that destination for some time, but kept it open for its Texas-based customers. The Airline had trouble converting proceeds from ticket sales in Nigeria’s Naira to US Dollars.
However, the global drop in the price of Nigeria’s oil has caused lack of Dollars in the country. Capital controls imposed by the government made many Companies struggle to move profits out of the country, Nigeria. In a memo to its employees, United mention poor financial performance and weakness in the energy sector for ending the route to Lagos. This is not unique to US Airlines alone; as Iberia Airline also closed its service to Nigeria from Madrid. The International Air Transport Association says nearly $600 million in airline revenues is trapped in Nigeria.
However, British Airways and Turkish Airlines are expected to keep their services running to Lagos.