IATA Warns Europe Air Fares Will Rise as UK Summer Fuel Demand Jumps 25%

3 articles · Updated · BBC.com · May 13

Willie Walsh said higher air fares in Europe are unavoidable because airlines cannot keep absorbing jet-fuel costs, even after some carriers cut short-term fares to spur weak demand.
A 25% jump in UK flight and fuel needs in July and August versus March could expose shortages if alternative supplies are not secured, though Walsh said there is no reason to panic or expect widespread cancellations.
Jet-fuel prices have been driven up by the Strait of Hormuz closure, disrupted crude supplies and damage to Gulf refining facilities, with Walsh warning the fallout could last for months and possibly into next year.
UK officials said airlines are not currently seeing jet-fuel shortages and suppliers hold bunker stocks, while the government works with the industry on realistic schedules to avoid last-minute disruption.
EU officials and Tui also said they do not expect a serious short-term shortage, but Europe remains reliant on Middle East imports and is seeking alternatives, including possible use of US-grade jet fuel.

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