The ongoing conflict in the Middle East linked to the wider Iran war situation has boosted global oil prices following concerns about disruption around the Strait of Hormuz.The hike has had a direct impact on the cost of jet fuel, raising fears of rising airfares across the world.
British Airways owner expressed pressure for fare increase
International Airlines Group (IAG), which owns British Airways, has warned that ticket prices are likely to rise as airlines pass on the burden of increased fuel costs. The company said the situation in the Middle East is pushing up operating expenses, even as it continues to use fuel hedging to manage price volatility.However, IAG stressed it is “not immune” to broader market shocks and confirmed that while supply remains stable, financial pressures are rising, Sky News reports.
Government monitoring fuel supply, airlines bracing for impact
The UK government said it was closely monitoring jet fuel stocks amid concerns of potential shortages if shipping disruptions through the Strait of Hormuz continue. Airlines have also been warned to prepare for volatility in fuel availability and pricing.In response, aviation regulators have relaxed rules for landing and take-off slots at airports. Airlines affected by fuel shortages will now be able to retain their slots without facing penalties under the normal “use it or lose it” system.
Airlines segmentation: normal operations vs fare increase
While budget carrier Jet2 said its services and holiday packages would continue “as normal”, other airlines are adjusting fares to manage rising costs. Reports suggest that carriers like Virgin Atlantic have already increased ticket prices across all cabin classes.Meanwhile, industry players including easyJet are expected to continue operations without immediate disruption, although cost pressures remain.EU Energy Commissioner Dan Jorgensen warned that travelers could face flight cancellations or significantly increased ticket prices if the crisis worsens.
