Soaring air travel costs could continue, despite the reopening of the Strait of Hormuz (Image: Getty)
British holidaymakers could still find themselves “priced out” of foreign summer holidays as soaring air travel costs remain a concern, despite any long-lasting reopening of the Strait of Hormuz. Flight tickets are expected to rise by hundreds of pounds in the coming weeks due to the ongoing spike in jet fuel prices and the risk of potential shortages.
Experts have said that airlines are struggling with fluctuating fuel costs and concerns about fuel availability, amid falling passenger demand. Long-haul flights have already seen price hikes of over £300, while short-haul fares are set to increase as supply issues worsen. On Friday (April 18), it appeared that the Strait was open to commercial vessels, sparking a drop in oil prices and which was hoped would allow oil, jet fuel and other exports to flow more freely. However, less than 24 hours later, Iran reversed its decision to open it.
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Industry insiders warned that it will take time to stabilise jet fuel supplies (Image: Getty)
But even if a reopening agreement were to hold, industry insiders have warned it would take time to stabilise jet fuel supplies.
Dustin Benton, managing director of Forefront Advisers, which advises airlines, explained that there is likely to be a “lag” in securing jet fuel. He noted that uncertainties around the safety of the waterway, restarting Middle Eastern refineries and the logistics of oil shipments could extend the issue well into summer.
“I don’t think the announcement changes the next six weeks to two months,” he said, according to The Times. “You can’t just snap your fingers and switch everything on.
“I would expect jet fuel prices won’t drop immediately, but by the end of the year, they should come down,” Mr Benton added. “But that’s still months away.”
Virgin Atlantic has already introduced a £50 fuel surcharge on economy tickets (Image: Getty)
Stena Bulk, a company operating oil tankers in the region, has indicated it will not resume operations until it is confident in the safety of the waterway, and other companies share similar concerns.
Virgin Atlantic has already introduced a £50 fuel surcharge on economy tickets, with business class surcharges rising to £360. CEO Corneel Koster warned that if fuel prices continue to climb, surcharges could increase further.
“If the fuel price goes up in a week and you book in two weeks’ time, you’ll be paying more,” he added.
While airlines may adjust schedules to manage fuel shortages, experts have predicted that passengers with deeper pockets will continue flying, while those with tighter budgets may be priced out.
As it stands, airlines are expected to have reliable fuel supplies until mid-May. (Image: Getty)
Government officials are preparing for potential disruptions to fuel supplies, with a contingency plan led by the Department for Transport and the Department for Net Zero. However, these plans have yet to be activated, as current fuel stocks remain sufficient for the immediate future.
Airline leaders are increasingly worried about supply shortages. British Airways’ parent company, IAG, recently held discussions about the fuel crisis, although it has not yet faced any disruptions. On Thursday, Fatih Birol, head of the International Energy Agency, stated that Europe could have “maybe six weeks” of jet fuel left, with the possibility of flight cancellations before the summer peak season.
Airlines UK, which represents British carriers, is in talks with the government to ensure vital support measures are in place if fuel disruptions occur. As it stands, airlines are expected to have reliable fuel supplies until mid-May.
This story originally appeared on Express.co.uk
