Brits urged to book summer holiday flights before Friday | UK | News
The critical oil trade route, the Strait of Hormuz, has been closed for nearly a month since the start of conflict in the Middle East. About a fifth of global oil trade passes through the strait, and the closure shocked oil markets and caused prices at the pumps to soar.
But Britain now faces another pressing problem: The country will receive its last jet fuel tanker from the Middle East this week, according to the Financial Times.
Airlines could face a sharp rise in jet fuel costs following disruption to key oil supply routes in the Middle East, including the most popular and busiest airlines such as Ryanair, Jet2 and Eastjet.
Make sure our latest headlines always appear at the top of your Google Search by making us your Preferred Source. Click here to activate or add us as a Preferred Source in your Google search settings.
According to OilPrice.com, if the oil supply in the Gulf is restricted, theoretical alternatives include China, South Korea, the USA and India.
But each faces significant limitations: China is geographically distant from Europe; South Korea faces little incentive to divert its cargo to Europe; US refiners are prioritizing domestic aviation demand and supplying parts of the Americas, and Indian refinery output increasingly from Russian crude will be affected by EU restrictions on products made from Russian barrels.
Jet fuel accounts for roughly a quarter of airline operating costs; This means that sustained increases are often passed on to passengers through higher ticket prices.
Industry analysts and airline bosses have warned that fares are expected to rise in the coming weeks, with some forecasts suggesting ticket prices could rise by up to 20% if current pressures continue.
While airlines often delay the immediate impact on fares by hedging fuel purchases in advance, protection is limited.
Flight prices are expected to rise when new, more expensive fuel supplies are factored in, and Britons may see a rise in prices for flights to summer holiday destinations.
Travel demand is also expected to increase towards the weekend as holidaymakers begin to book their summer getaways during the public holiday.
While prices generally rise as demand increases and seats fill, experts say the coming days could be an important window before higher fuel costs and stronger demand combine to increase fares more sharply.
This means current prices may reflect a short period before both rising fuel costs and pre-Easter demand start to be reflected in ticket prices, leading to advice that travelers should consider booking sooner rather than later.
