THE owner of a major British airline has warned of higher ticket prices after the Iran War pushed up oil prices.
International Airlines Group (IAG), which owns British Airways, said yesterday that the situation in the Middle East will push up the cost of flights.
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British Airways has warned flight prices may need to rise Credit: EPA
Jet fuel costs have risen as the closure of the Strait of Hormuz, a key shipping route, has caused oil prices to rise sharply.
Airlines usually buy some of their fuel in advance at a fixed price to protect themselves against price volatility, which is known as hedging.
IAG said that even though it has fuel hedges it is not immune to the broader impact from the conflict.
But it insisted that it is not yet seeing any disruption to its jet supply.
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An IAG spokesperson said: “Flexibility from government, including on (airport) slot alleviation, would ensure airlines can continue to operate as efficiently as possible and manage sustained cost challenges while keeping people and trade moving.”
The government is closely monitoring fuel stocks as airlines have warned that they could face potential shortages.
British Airways is not the first airline to warn that it will have to increase the cost of flights.
United Airlines has said that fares could go up by as much as 20% due to soaring jet fuel prices.
The airline also confirmed that 5% of flights would be cancelled because of rising fuel cost fears.
Meanwhile, Virgin Atlantic has increased its economy fares by £50.
Anyone flying in premium economy will pay an extra £180 and those in business class will pay an extra £360.
What does this mean for your upcoming holiday?
1. How will this affect my holiday?
Getaways should not be seriously impacted immediately as airlines bought fuel far in advance at a fixed rate.
But if the crisis continues into June, operators may start adding a surcharge to holiday prices.
A limited number of flights may be cancelled, but mostly on well-served routes with alternatives.
If supplies start to dry up, cancellations would increase.
2. Am I entitled to a refund?
IF some or all of your holiday is cancelled by the provider, your refund depends on whether you booked your trip as a package holiday, or individually.
Your money tends to be much better protected with a package deal.
3. Is now a bad time to book?
There are some great deals, but book with caution.
You must take out travel insurance as, if your flight is cancelled, you may have protection against the cost of other elements of your holiday, such as accommodation.
