The price of airline tickets will go up “without a doubt” as fuel costs rise, and air industry bosses have warned. Oil prices have surged as economies recovering from the Covid pandemic caused by war in Ukraine.
Willie Walsh, director-general of the International Air Transport Association (IATA), said these costs would be passed on to consumers. The former British Airways boss also said Heathrow airport “should be better prepared” to avoid the recent disruption.
But Heathrow said Mr Walsh’s remarks were “bad information”. Holidaymakers need to be prepared for the cost of flights to go up, Mr Walsh told.
“Flying will be more expensive for consumers, without doubt”, he said, adding that the “high price of oil” will be “reflected in higher ticket prices”.
Oil prices were already rising as demand picked up again in economies recovering from the Covid pandemic.
The outcome of the war in Ukraine has pushed up prices further. The US has announced a complete ban on oil imports from Russia, with Britain aiming to end Russian supplies by the end of the year.
EU leaders have said they will halt most Russian oil imports by the end of 2022. This means that demand for oil from other producers has increased, pushing prices higher. Mr Walsh said fuel prices were at record highs, and that “oil is the single biggest element of an airline’s cost base”.
“It’s inevitable that ultimately the high oil prices will be passed through to consumers in higher ticket prices.”