European Air Fares to Increase, UK Faces Summer Jet Fuel Supply Concerns
Higher ticket prices for European air travel are “inevitable” owing to the prohibitive cost of jet fuel, stated Willie Walsh, head of the International Air Transport Association. While some carriers have recently cut European fares to stimulate demand, Walsh maintained that airlines cannot indefinitely absorb these escalating operational expenses.
Concerns persist regarding potential jet fuel shortages in the UK over the summer months. Walsh, however, stressed that panic was unwarranted. He noted that even a hypothetical immediate reopening of the Strait of Hormuz, a critical chokepoint impacted by the conflict in Iran, would not instantly alleviate the disruption’s effects, which could extend into next year. The UK government maintains that airlines are “not currently seeing a shortage of jet fuel”.
Europe, particularly the UK, relies heavily on Middle Eastern crude and refined product imports. The closure of the Strait of Hormuz has forced a scramble for alternative supplies. The EU recently permitted the use of US-grade jet fuel, provided its introduction is carefully managed. EU Energy Commissioner Dan Jorgensen and Tui Chief Executive Sebastien Ebel do not anticipate serious short-term shortages.
Walsh, however, highlighted timing as a “major problem facing the UK”. He explained, “You normally expect to see a 25% increase in flights and fuel requirements in the months of July and August versus, let’s say March. The concern will be that if sufficient alternative supply isn’t sourced, there may be some shortages when we get into the peak summer period.” Despite this, he reiterated that widespread flight cancellations could be avoided.
Long-haul flight costs have already seen substantial increases. While some European fares have temporarily decreased due to airline discounting to attract reluctant travellers, Walsh insisted this trend is unsustainable. “There’s just no way airlines can absorb the additional costs they’re experiencing,” he stated, adding, “Over time it’s inevitable that the high price of oil will be reflected in higher ticket prices.” He predicted that supply disruptions and refinery damage in the Gulf region mean elevated fuel prices are likely to persist for several months, potentially into next year.
A government spokesperson confirmed that fuel suppliers maintain “stocks of bunkered fuel to support their resilience” and that the government is collaborating with the aviation industry to sustain operations and explore “measures to help airlines plan realistic flight schedules which will avoid last-minute disruption and protect holidays.”
