British Airways ticket price warning amid fuel crisis as holidaymakers on alert

The comment from the owner of BA comes after Jet2 said it would not introduce surcharges on any booked flights or holidays to cover cost increases

The parent company of British Airways has cautioned that airfares are set to climb as the closure of the Strait of Hormuz, triggered by the Iran conflict, has caused oil prices to surge dramatically.

International Airlines Group (IAG) announced on Friday that the ongoing Middle East crisis will push up the cost of flights to account for soaring jet fuel prices.

Airlines routinely purchase a portion of their fuel in advance at fixed rates to shield themselves from price fluctuations, a strategy commonly referred to as “hedging”.

Despite this, IAG warned that it remained “not immune” to the wider consequences of the Middle East conflict. The group insisted it had yet to experience any disruption to its jet fuel supply, amid growing concerns over potential future shortages as a result of the ongoing hostilities.

The government is “closely monitoring” fuel stocks as airlines brace themselves for possible shortages, with oil tankers still unable to navigate the Strait of Hormuz. It has also emerged that airports are set to make it simpler for airlines to cancel flights without jeopardising their allocated take-off and landing slots, should fuel shortages prevent them from operating. The Department for Transport (DfT) announced that airlines will no longer be obliged to adhere to the “use it or lose it” rule at UK airports, whereby carriers must utilise at least 80% of their allocated slots during a season in order to retain them for the following year. “Airport Coordination Limited, the independent body that manages slot allocation at UK airports, has updated its guidance so that airlines will not lose their slots if fuel shortages prevent them from flying,” the DfT statement confirmed.

“Airlines can now apply for an exemption from the ‘use it or lose it’ rule in these circumstances.”

Meanwhile, Jet2 has revealed it will not be imposing surcharges on any previously booked flights or holidays to offset rising costs, reassuring customers that the price they book is the price they will pay.

The policy covers all flights and holidays booked through any channel, whether online, via the mobile app, contact centre or through an independent travel agent. Steve Heapy, CEO of Jet2 said: “Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs, and they can have that complete assurance when they book a flight or holiday with Jet2. As a result of today’s announcement, customers booking with Jet2 know that they are locking in their price without additional cost surprises later and we strongly believe that is the right thing to do by them. Ahead of a busy summer this is yet more evidence of why, on top of our incredible holidays and award-winning customer service, nothing beats a Jet2holiday.”