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Economy May 14, 2026

Inevitable Jet Fuel Shortages to Drive Up Summer Air Fares, Warns Aviation Chief

International Air Transport Association head Willie Walsh warns that rising jet fuel costs, exacerb…
The Lead: Inevitable Fare Increases Due to Fuel CrisisIncreases in air fares for travellers in Europe are "inevitable" over the peak summer period because of the high cost of jet fuel, according to the head of the international aviation body. While some airlines have recently reduced European fares due to weak demand, Willie Walsh, the former British Airways boss who leads the International Air Transport Association, said there was no way carriers could absorb the extra costs in the long run.The Event Details: Middle East Tensions Disrupt Fuel SupplyWalsh told the BBC there was no need to panic over potential jet fuel shortages this summer, and believes that widespread cancellations of flights can be avoided. However, he warned rising fuel prices would inevitably push up ticket prices. Even if the strait of Hormuz were to reopen tomorrow, the impact of disruption caused by the US-Israeli war on Iran could still be felt into next year. Iran's effective closure of the strait, a key shipping route, has sent the cost of jet fuel soaring.The Data Analysis: Fuel Shortages and Flight Reductions"Over time it's inevitable that the high price of oil will be reflected in higher ticket prices," Walsh said. He noted that the UK typically sees a 25% increase in flights and fuel requirements in July and August compared to March. Some long-haul flights have already risen in price. The UK and the rest of Europe are highly reliant on imports of jet fuel from the Middle East, and have been scrambling to find alternative supplies. Airlines have axed 296 departures from UK airports this month, equivalent to 0.75% of the total, according to Aviation analytics company Cirium.The Impact Analysis: Industry and Government ResponsesLast week, the EU said there was no regulatory reason why US-grade jet fuel should not be used by European airlines, as long as its introduction was managed carefully. This week the EU's energy commissioner, Dan Jørgensen, said while there was no immediate threat to jet fuel supplies, there could be shortages in the longer term. The chief executive of the travel operator Tui, Sebastian Ebel, said he did not expect shortages over the coming months. The UK's transport secretary, Heidi Alexander, said summer holiday plans would not face major disruption because of shortages, noting more fuel had been imported from America and UK refineries had increased production. The government has also introduced a temporary rule change, allowing airlines to group passengers from different flights together on fewer planes to save fuel.The Prediction: Extended Fuel Crisis Through 2027Walsh warned fuel shortages could continue into 2027. "Whichever way you look at it, I think this issue will continue for a number of months to come, and may indeed continue into next year," he said. Separately, the Home Office announced that children aged eight and nine returning to the UK from abroad would be able to use e-gates at airports and other re-entry points, from 8 July. By lowering the minimum age from 10, the government believes up to 1.5 million more children will be able to use e-gates.
#Willie Walsh #International Air Transport Association #Jet Fuel Crisis
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World Wide May 12, 2026

Britons Change Holiday Plans Amid Iran War Fears

The ongoing Middle East crisis has led to increased uncertainty and fears of travel disruptions, ca…
The Impact of the Middle East Crisis on Holiday PlansThe Middle East crisis, now in its 11th week, has resulted in higher fuel prices for drivers and prompted fears of jet fuel shortages, rising air fares, and cancelled flights. Given the uncertain outlook, prospect of higher travel costs, and potential disruption, many people have changed their holiday plans.Changing Travel Plans Due to UncertaintyRaffaele Brancati, 77, from Wiltshire, delayed making a holiday booking to Italy or Sicily due to the geopolitical situation. He and his wife, Linda, 78, are now considering a break in the UK or travelling by train via Eurostar.Opting for Train Travel to Avoid DisruptionsDanie Jones, a senior administrator from East Anglia, and her husband initially planned to drive to Rotterdam and Munich but have decided to travel by train due to rising costs and uncertainty. They have also cancelled their annual trip to Gdańsk owing to the risk of disruption.Overland Travel to Avoid Flight CancellationsPhil and Alison Cantor from rural north Essex have decided to travel overland to Norway to avoid any flight delays or cancellations that could derail their non-refundable dream holiday. They are now embracing the change and calling it their 'race across the world'.Railway Journey with No Driving StressAsh, 33, from London, was planning a driving and camping holiday in the Alsace region of France but the rising fuel costs prompted a rethink. They are now looking forward to a railway journey with no driving stress, having found an affordable and efficient way to travel by rail.
#Iran #Middle East crisis #holiday plans
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World Economy Mar 23, 2026

EasyJet Warns of Air Fare Rises as Iran War Hits Bookings

EasyJet's CEO, Kenton Jarvis, warns that the Iran war has led to a drop in flight bookings, particu…
EasyJet's chief executive, Kenton Jarvis, has announced that the ongoing conflict in the Middle East has started to impact flight bookings, with a notable drop in reservations for destinations such as Turkey, Cyprus, and Egypt. Bookings have slowed for summer, with passengers opting for 'usual suspects' like Spain, Greece, and Portugal instead.Jarvis attributed the decline to the Iran war and its effect on consumer confidence. He mentioned that while the airline has hedged much of its fuel into next year, soaring kerosene prices will likely lead to a rise in air fares by the end of the summer.Fuel prices have surged, with easyJet currently paying $700 (£520) a tonne for jet fuel, compared to current spot prices of $1,850. Jarvis noted that while most European airlines are well-hedged, fares will likely increase as the higher costs are passed on to consumers.The airline's hedging strategy means it can still secure a price of $1,000 in six months, but market expectations are that fuel prices will decrease. However, Jarvis warned that the reality is that prices will start feeding into consumer costs over the back end of summer.In related news, easyJet has reopened a base at Newcastle airport, which it closed in 2020 due to Covid-19. The base will bring 140 jobs and support over 1,000 new jobs in the wider north-east region, with plans to fly up to 800,000 holidaymakers out of Newcastle this summer.
#easyjet #bookings #summer
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