Jet Fuel Prices Rise, Set to Hike European Airfares

Rising jet fuel prices triggered by the Iran conflict and the closure of the Strait of Hormuz are set to drive up airfares across Europe, with industry leaders warning of inevitable increases as airlines grapple with mounting costs ahead of the summer travel peak.

Willie Walsh, director general of the International Air Transport Association, told the BBC that airlines cannot absorb the additional expenses indefinitely. "There's just no way airlines can absorb the additional costs they're experiencing," he said. He highlighted the timing challenge for the UK, where flights and fuel demand typically rise 25 percent in July and August compared to earlier months. Even if the strait reopens immediately, Walsh added, disruptions from damaged Gulf refining facilities and crude oil supply issues could persist for months or into next year.

Europe, particularly the UK, relies heavily on Middle East imports for jet fuel, and the strait closure has spiked prices, with some long-haul routes already seeing significant hikes. While a few airlines have cut European fares recently to stimulate demand amid softer bookings, Walsh predicted these discounts would prove temporary. Aviation analytics...