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Middle East Conflict Drives Up Jet Fuel Prices, Prompting Airline Adjustments to UK Routes
Multiple airlines are reducing flights to the UK and increasing fares in response to soaring jet fuel costs linked to the Middle East conflict. The Strait of Hormuz closure has doubled fuel prices since March, affecting long-haul routes significantly. Tour operators may add up to 8% to package holiday costs due to fuel rises.
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Airlines including KLM, Air Canada, Asiana Airlines, Delta Airlines, Lufthansa and SAS plan to operate fewer flights to the UK amid rising jet fuel prices triggered by the Middle East conflict. The price of flights has been increasing since the conflict began. In contrast, IAG, the owner of British Airways, along with EasyJet and Jet2Holidays, do not plan to alter their schedules.
Several carriers will start charging more for flights, including Air France-KLM, Indigo, IAG as owner of British Airways, Pakistan International Airlines, Thai Airways, Turkish Airlines-Sun Express and Virgin Atlantic. Low-cost Spanish regional airline Volotea will add a surcharge to tickets it has already sold.
Tour operators can add up to 8% to the cost of package holidays after booking based on a significant rise in fuel costs, according to Rory Boland, travel editor at consumer publication Which?.
The Strait of Hormuz has effectively been closed to shipping since the start of March, contributing to the fuel supply squeeze. Jet fuel prices roughly doubled during March and the first half of April. Airlines agree deals in advance to lock in lower prices, but longer term they will pay more for fuel.
Long-haul routes have seen the biggest fare increases, with flights from London to Melbourne in June now costing 76% more than last year, according to consultancy Teneo. Flights to Hong Kong are up 72% compared to last year, Teneo data shows. The squeeze on supply has pushed up jet fuel prices sharply, though airlines are not currently running short of fuel.
Spain's industry and tourism minister Jordi Hereu stated on 27 April that people should buy airline tickets as soon as possible in case fares are increased to cover higher jet fuel costs. He highlighted the element of price fluctuations due to airlines using previously purchased fuel.
Overall cancellations represent a very small proportion of the millions of flights in and out of the UK, Boland noted.
