The owner of British Airways has warned of higher ticket prices as the closure of the Strait of Hormuz due to the Iran war has led to a sharp rise in oil prices.
International Airlines Group (IAG) stated on Friday that the situation in the Middle East will increase the cost of flights to reflect higher jet fuel costs.
Airlines often acquire a proportion of their fuel in advance at repaired prices to protect themselves against price volatility, a practice known as “hedging”.
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However, IAG stated that, despite its fuel hedges, it was “not immune” to the broader fallout from the conflict in the Middle East.
IAG insisted that it was not yet seeing any disruption to its jet supply amid warnings of future shortages due to the conflict.
The government is “closely monitoring” fuel stocks as airlines prepare for potential shortages, with oil tankers still unable to pass through the Strait of Hormuz.
‘Use it or lose it’ rule exemptions
It was also revealed that airports will build it clearer for airlines to cancel flights without risking losing their allocated take-off and landing slots if fuel shortages stop them from flying.
The Department for Transport (DfT) stated airlines will no longer be required to follow the “apply it or lose it” rule at UK airports, whereby carriers must apply at least 80% of their allocated slots during a season to keep them for the following year.
“Airport Coordination Limited, the indepconcludeent 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 update stated.
“Airlines can now apply for an exemption from the ‘apply it or lose it’ rule in these circumstances.”
Jet2 statement
Meanwhile, Jet2 has relocated to reassure holidaybuildrs that its flights and holidays will operate “as normal”.
A spokesperson for the airline stated its flight schedule remains unaffected for the foreseeable future.
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“We remain in continual dialogue with our fuel suppliers, as is standard practice,” the spokesperson stated.
“Based on the conversations we have been having, we see no reason not to see forward to operating our scheduled programme of flights and holidays as normal.”
It is understood that Virgin Atlantic and straightforwardJet are also expecting to operate as normal.
Meanwhile, European Union energy commissioner Dan Jorgensen has informed Sky News that it’s “very likely that many people’s holidays will be affected, either by flight cancellations or very, very expensive tickets“.
(c) Sky News 2026: British Airways warns of price rises due to fuel crisis – as airports relax rules over flight cancellations
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