Airline tickets in Europe likely to become costlier: Here's why

Airline tickets in Europe likely to become costlier: Here's why

The ongoing conflict in Iran has disrupted fuel supplies and driven up jet fuel prices, prompting warnings of higher airfares across Europe.

Willie Walsh, the head of the International Air Transport Association (IATA), said that rising ticket prices for air travelers in Europe are "inevitable" due to high jet fuel costs.

UK airlines not witnessing jet fuel shortage: Government

Despite some airlines recently reducing their European fares due to low demand, Walsh stressed that they can't bear the extra costs in the long run.

He told BBC that even if the Strait of Hormuz were to reopen tomorrow, disruption from the Middle East conflict could linger into next year.

However, a government spokesperson said UK airlines aren't witnessing any jet fuel shortage at present.

Europe races to find alternative jet fuel sources

The closure of the Strait of Hormuz due to the Iran conflict has drastically affected jet fuel prices and raised concerns over potential shortages in the coming months.

Europe, especially the UK, heavily relies on imports from this region and is now racing against time to find alternative sources.

Last week, EU officials said there was no regulatory reason why US-grade jet fuel couldn't be used by European airlines if introduced carefully.

EU energy commissioner addresses potential supply issues

On Wednesday, Dan Jorgensen, the EU's energy commissioner, said he doesn't expect a major shortage in the short term but can't rule out supply issues in the long run.

Sebastien Ebel, CEO of travel operator Tui, also echoed this sentiment by saying he doesn't anticipate shortages over the coming months.

However, Walsh remains concerned for UK operators due to timing issues with increased flights and fuel requirements during peak summer months.

Airlines can't absorb additional costs, warns Walsh

The surge in fuel prices has already impacted long-haul flight costs, with some witnessing significant hikes.

Despite this, Walsh said the situation won't last as "there's just no way airlines can absorb the additional costs they're experiencing."

He added that while some airlines may discount fares to boost traffic flow, the high price of oil will eventually lead to higher ticket prices across Europe.

Government working with aviation industry to keep flights operating

A government spokesperson said fuel suppliers maintain "stocks of bunkered fuel to support their resilience."

The government is working with the aviation industry to keep flights operating and consulting on "measures to help airlines plan realistic flight schedules which will avoid last-minute disruption and protect holidays."

Despite these efforts, Walsh warned that disruptions in crude oil supplies and damage to refining facilities in the Gulf could keep fuel prices high for months.