The parent company of British Airways has warned passengers to expect higher airfares as rising jet fuel costs place pressure on the aviation industry.
International Airlines Group (IAG) issued the warning on Friday, pointing to the closure of the Strait of Hormuz during the ongoing Iran conflict as a key factor driving oil prices higher.
The airline group said that despite using hedging strategies, which involve purchasing fuel in advance at fixed rates to limit exposure to market volatility, it remains exposed to wider geopolitical developments.
IAG said it was “not immune” to the broader consequences of instability in the Middle East.
Oil tankers continue to face disruption along the critical shipping route, contributing to a sharp increase in crude prices.
Authorities are monitoring the UK’s fuel reserves as airlines prepare for the possibility of supply constraints.
The Department for Transport has taken steps to reduce operational pressure on airlines by adjusting slot allocation rules at British airports.
Under normal conditions, airlines are required to use at least 80 per cent of their allocated take-off and landing slots during a season in order to retain them for the following year.
IAG warns passengers to expect higher airfares as fuel costs surge
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The Department for Transport confirmed that this “use it or lose it” rule will not apply in cases where fuel shortages prevent airlines from operating scheduled flights.
Airport Coordination Limited, which oversees slot distribution at UK airports, has updated its guidance in response to the situation.
Airlines are now able to apply for exemptions from standard slot usage requirements if fuel supply issues affect their operations.
Jet2 has moved to reassure passengers, stating that its services are expected to continue as scheduled.
easyJet are planning to operate as normal despite the ongoing uncertainty
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A spokesman for the airline said flight operations remain unaffected in the near term.
They said: “We remain in continual dialogue with our fuel suppliers, as is standard practice.
“Based on the conversations we have been having, we see no reason not to look forward to operating our scheduled programme of flights and holidays as normal.”
Virgin Atlantic and easyJet are also understood to be planning to operate as normal despite ongoing uncertainty in global fuel markets.
EU Commissioner for Energy and Housing Dan Jorgensen
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The European Union’s energy commissioner has suggested there may be wider impacts for travellers across Europe.
Dan Jorgensen told Sky News it is “very likely that many people’s holidays will be affected, either by flight cancellations or very, very expensive tickets”.
His comments reflect concerns about the potential knock-on effects of rising fuel costs and supply disruption.
IAG has stated that it is not currently experiencing any interruption to its jet fuel supplies.
The group indicated that while higher costs may affect pricing, there has been no immediate impact on flight operations.