British Airways owner warns of price hikes - as Jet2 reassures travellers amid fuel crisis
BA's parent company has warned that higher airfares are inevitable due to the sharp rise in oil prices.
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On Friday, International Airlines Group (IAG), who owns the nation's flag carrier, said the tense situation in the Middle East would lead to an increase in the cost of flights as a result of the jet fuel crisis.
The closure of the Strait of Hormuz sent oil prices to record highs, sparking global fears of flight cancellations amid soaring jet fuel costs and supply shortages.
To mitigate price fluctuations better, airlines routinely buy a portion of their fuel in advance at fixed rates, a strategy commonly referred to as 'hedging'.
Even with its fuel hedges, IAG said was "not immune" to the fallout from the conflict in Iran. However, the group insisted it had yet to experience any disruption to its jet fuel supply.
On a more positive note, Jet2 has instead reassured travellers that its flights and holidays will operate "as normal" amid the uncertainty surrounding summer breaks.
A spokesperson for the company said its flight schedule would be unaffected for the foreseeable future.
They said: "We remain in continual dialogue with our fuel suppliers, as is standard practice.
"Based on the conversations we have been having, we see no reason not to look forward to operating our scheduled programme of flights and holidays as normal."
Jet2 has also revealed it would not be imposing surcharges on any previously booked flights or holidays to offset rising costs.
The policy covers all flights and holidays booked through any channel, whether online, via the mobile app, contact centre or through an independent travel agent.
Steve Heapy, CEO of Jet2, said in a statement: "Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs, and they can have that complete assurance when they book a flight or holiday with Jet2.
"As a result of today's announcement, customers booking with Jet2 know that they are locking in their price without additional cost surprises later and we strongly believe that is the right thing to do by them.
"Ahead of a busy summer this is yet more evidence of why, on top of our incredible holidays and award-winning customer service, nothing beats a Jet2holiday."
It has been reported that Virgin Atlantic and easyJet are also expecting to operate as normal.
As the aviation industry braces itself for possible shortages, UK airports are set to make it simpler for airlines to cancel flights without losing their allocated take-off and landing slots if fuel shortages stop them from flying.
The Department for Transport (DfT) announced that airlines would no longer be obliged to adhere to the "use it or lose it" rule at UK airports, which forced carried to utilise at least 80% of their allocated slots during a season in order to retain them for the following year.
"Airport Coordination Limited, the independent body that manages slot allocation at UK airports, has updated its guidance so that airlines will not lose their slots if fuel shortages prevent them from flying," the DfT statement confirmed.