Higher Air Fares Across Europe ‘Inevitable’ Amid Jet Fuel Concerns, Says IATA Chief

Air travellers across Europe are likely to face higher ticket prices in the coming months as airlines struggle to cope with soaring jet fuel costs triggered by ongoing disruption in the Middle East, according to Willie Walsh, head of the International Air Transport Association.

Although some European airlines have recently lowered fares in an attempt to encourage bookings amid weaker-than-expected demand, Walsh warned that carriers would not be able to absorb rising operating expenses indefinitely.

“There’s just no way airlines can absorb the additional costs they’re experiencing,” Walsh explained.

He added:

“There may be some instances where airlines will discount to stimulate some traffic flow… but over time it’s inevitable that the high price of oil will be reflected in higher ticket prices.”

The comments come as the aviation sector continues to deal with the fallout from disruption linked to the conflict involving Iran and the closure of the Strait of Hormuz, a critical global shipping route for oil and fuel supplies. The situation has sharply increased jet fuel prices and raised fears about potential shortages later this year.

Europe, particularly the United Kingdom, remains heavily dependent on fuel imports from the region, prompting governments and airlines to seek alternative supply sources.

Last week, the European Union confirmed there were no regulatory barriers preventing European airlines from using US-grade jet fuel, provided the transition was introduced carefully.

On Wednesday, Dan Jorgensen, the EU’s energy commissioner, said he did not expect serious shortages in the immediate future, though he acknowledged that supply problems could emerge over a longer period.

Meanwhile, Sebastien Ebel, chief executive of travel company TUI, also said he did not anticipate fuel shortages in the coming months.

Despite those reassurances, Walsh cautioned that British operators remain vulnerable as the peak summer travel season approaches.

“I think the major problem facing the UK is timing,” he explained.

“You normally expect to see a 25% increase in flights and fuel requirements in the months of July and August versus, let’s say March.”

He continued:

“I think the concern will be that if sufficient alternative supply isn’t sourced, there may be some shortages when we get into the peak summer period.”

Even so, Walsh stressed there was no reason for alarm and suggested that major operational disruption and widespread cancellations could still be avoided.

The rise in fuel costs has already begun affecting long-haul ticket prices, with some routes recording substantial increases. However, airline executives noted that certain European fares have temporarily fallen as carriers introduced discounts to encourage hesitant consumers to travel.

Walsh maintained that such pricing trends would only be temporary due to sustained pressure from energy markets.

He also warned that the wider impact of disrupted crude oil supplies and damage to refining infrastructure in the Gulf region would continue to affect airlines for an extended period, even if the Strait of Hormuz were reopened immediately.

“Whichever way you look at it, I think this issue will continue for a number of months to come, and may indeed continue into next year,” he said.

A spokesperson for the UK government stated that airlines operating in Britain were “clear that they are not currently seeing a shortage of jet fuel”.

The spokesperson also noted that suppliers maintain “stocks of bunkered fuel to support their resilience”, adding that the government continues to work closely with the aviation industry to ensure flights continue operating smoothly.

In addition, officials are consulting on “measures to help airlines plan realistic flight schedules which will avoid last-minute disruption and protect holidays”.

By fLEXI tEAM