British Airways warns of higher airfares as UK govt monitors oil price surge amid Iran war

The ongoing conflict in the Middle East, linked to the wider Iran war situation, has sparked a rise in global oil prices after disruption concerns around the Strait of Hormuz.

The spike has directly impacted jet fuel costs, raising fears of higher airfares across the world.

British Airways owner flags fare hike pressure

International Airlines Group (IAG), which owns British Airways, has warned that ticket prices are likely to rise as airlines pass on increased fuel costs. The company said the situation in the Middle East is pushing up operating expenses, even though it continues to use fuel hedging to manage price volatility.

However, IAG stressed it is “not immune” to broader market shocks and confirmed that while supply remains stable, the financial pressure is increasing, Sky News reported.

Government monitoring fuel supply, airlines brace for impact

The UK government said it is closely monitoring jet fuel stocks amid concerns over possible shortages if shipping disruptions continue through the Strait of Hormuz. Airlines have also been warned to prepare for volatility in fuel availability and pricing.

In response, aviation regulators have relaxed rules around airport landing and take-off slots. Airlines affected by fuel shortages will now be able to retain their slots without facing penalties under the usual “use it or lose it” system.

Airlines split: normal operations vs fare increases

While budget carrier Jet2 said its services and holiday packages will continue “as normal”, other airlines are adjusting fares to manage rising costs. Reports suggest carriers like Virgin Atlantic have already increased ticket prices across cabin classes.

Meanwhile, industry players, including easyJet are expected to continue operations without immediate disruption, though cost pressures remain.

European Union Energy Commissioner Dan Jørgensen warned that travellers could face either flight cancellations or significantly higher ticket prices if the crisis escalates further.