Ask Onix
IATA chief: Higher airfares in Europe unavoidable
Air travellers in Europe should brace for higher ticket prices due to soaring jet fuel costs, the head of the International Air Transport Association (IATA) has warned. Willie Walsh told the BBC that airlines cannot indefinitely absorb the additional expenses, making fare increases inevitable over time.
Fuel supply concerns persist despite assurances
While some airlines have recently slashed fares to stimulate demand, Walsh expressed concerns about potential fuel shortages in the UK during the peak summer travel season. Typically, fuel demand surges by 25% in July and August compared to March, raising fears that alternative supplies may not be sufficient to meet the spike.
The closure of the Strait of Hormuz, a critical shipping route for Middle Eastern oil, has disrupted global fuel markets. Europe, particularly the UK, relies heavily on imports from the region and has been seeking alternative sources. Last week, the EU confirmed that US-grade jet fuel could be used by European carriers if introduced carefully, though long-term supply risks remain.
Short-term relief, but long-term uncertainty
EU Energy Commissioner Dan Jorgensen dismissed immediate shortage fears but acknowledged potential supply challenges in the coming months. Similarly, Tui CEO Sebastien Ebel said he did not anticipate shortages in the near term. However, Walsh cautioned that the impact of Middle East disruptions could linger into 2025, even if the Strait of Hormuz reopens soon.
"The major problem facing the UK is timing. If sufficient alternative supply isn't sourced, there may be some shortages when we get into the peak summer period."
Willie Walsh, IATA Director General
Government and industry response
A UK government spokesperson stated that airlines are not currently experiencing fuel shortages and that suppliers maintain stockpiles to ensure resilience. The government is collaborating with the aviation sector to maintain flight operations and is consulting on measures to help airlines plan realistic schedules, avoiding last-minute disruptions and protecting holiday plans.
Fuel price surge already hitting long-haul flights
The spike in fuel costs has already led to higher prices for long-haul flights, with some routes seeing significant increases. While some European carriers have introduced discounts to attract hesitant travellers, Walsh insisted this trend would not last.
"There's just no way airlines can absorb the additional costs they're experiencing. Over time, it's inevitable that the high price of oil will be reflected in higher ticket prices."
Willie Walsh, IATA Director General
Outlook: Prolonged disruption likely
Walsh warned that even if the Strait of Hormuz reopens, the damage to refining facilities in the Gulf and broader supply chain disruptions mean fuel prices are unlikely to drop quickly. He predicted the issue would persist for months, potentially extending into next year.
