British Airways, a prominent UK airline, is considering raising ticket prices further if the current surge in fuel costs continues. Sean Doyle, the airline’s Chief Executive, has highlighted the ongoing challenges faced by carriers due to escalating fuel expenses linked to the Middle East conflict, which has led to a more than 50% increase in oil prices since March.
Tensions between the US and Iran have been ongoing since February 28, following joint US-Israeli strikes on key Iranian sites. In retaliation, Iran targeted various locations across the Middle East and closed the vital Strait of Hormuz, a crucial waterway for global oil trade.
As a consequence of the conflict, airlines have issued warnings about potential increases in jet fuel prices. Since the conflict with Iran began in February, jet fuel prices have reportedly doubled, as reported by the Financial Times. Doyle emphasized the necessity of adjusting fares in response to rising fuel costs, mentioning that British Airways had already raised prices to offset the increased expenses.
Further fare hikes may be unavoidable if fuel prices remain high, with British Airways expected to pass on more of the cost burden on long-haul routes, especially those frequented by business travelers.
Efforts to establish a lasting peace deal between the US and Iran have been made since the conflict began. Israel recently retaliated against Iranian missile attacks by targeting Iran’s Karun petrochemical plant near Bandar-e-Mahshahr.
The escalation in Middle East tensions on Monday, May 8, led to another spike in oil prices, heightening concerns about the long-term impact on airfares.