Brittany Ferries boss accuses travel industry of ‘profiteering’ from the Iran war
Christophe Mathieu said that he believes airlines and ferry operators are using the situation in the Middle East as an opportunity to cancel flights or put their prices up
The CEO of Brittany Ferries has accused the travel industry of "profiteering" from the conflict with Iran as he vowed his company will not increase prices or cancel services.
Listen to this article
Christophe Mathieu has told LBC News that he believes airlines and ferry operators are using the situation in the Middle East as an opportunity to cancel flights or put their prices up.
Since the closure of the Strait of Hormuz, fuel prices have risen sharply, with the average price of petrol rising by 8.6p per litre between February and March to 140.2p per litre.
Data from the Office for National Statistics (ONS) also revealed that the cost of air travel has increased significantly, with inflation of 14.5 per cent compared with the same month last year.
The rise in air fares, which analysts have partly linked to the early timing of the Easter holidays, was the highest since July last year.
Read more: UK inflation rises as Middle East conflict pushes up fuel prices
Read more: Major European airline axes 20,000 flights this summer amid rising jet fuel costs
Mr Mathieu told Charlotte Lynch on LBC News: "Of course, this fuel price is an item that is very important in the cost structure of any transport company.
"But the way of managing that normally is to hedge and we hedge in Brittany Ferries, therefore we are surprised."
He added that his company had already bought its fuel for the next few months when it was at a price of around $70 (£51.81) per barrel.
"Because we've bought it forward," he said.
"It's irrelevant today that the prices are going up because our cost will remain as if the barrel was at $70.
"What I find bizarre is that at the moment there is no shortage and yet they're already cancelling some flights, which is a bit bizarre."
It comes as German airline Lufthansa announced that it has axed 20,000 flights this summer as the ongoing conflict with Iran drives up the costs of jet fuel.
The company anticipates that it will save 40,000 metric tons of jet fuel through these measures, adding that the price of fuel has doubled since the outbreak of the conflict with Iran.
Mr Mathieu said: "We also want to pass the message to people that with us there will be no risk of cancellation because we are certain to be supplied for the coming months.
But more importantly, not only will we not cancel, but we will not put our prices up"