INTERNATIONAL AIR TRANSPORT UNION - MORE EXPENSIVE AIR TICKETS ARE COMING - FUEL SHORTAGES ARE POSSIBLE IN THE SUMMER - Filenews 14/5
The International Air Transport Association (IATA) considers the increase in air ticket prices in Europe inevitable, as the cost of aviation fuel has soared due to the ongoing crisis in the Strait of Hormuz and the uncertainty surrounding the evolution of the conflict in the Middle East.
IATA Director-General Willie Walsh told the BBC that although some airlines in Europe have recently cut prices due to sluggish demand, they cannot continue to absorb the increased operating costs indefinitely.
"There is no way for airlines to continue to absorb the extra costs they face," he said. As he explained, offers and discounts may continue for a while, with the aim of boosting demand, however "over time it is inevitable that the high price of oil will be reflected in higher ticket prices".
The increase in fuel costs has already affected long-haul flights, where significant price increases are recorded.
The suspension of free navigation in the Strait of Hormuz, due to the US and Israel's conflict with Iran, has caused intense turbulence in the aviation fuel market, reinforcing fears of possible shortages in the coming months.
Europe, and Britain in particular, is heavily dependent on fuel imports from the Middle East and is already looking for alternative sources of supply.
Last week, the European Union announced that there is no regulatory barrier to the use of American jet fuel by European airlines, provided that the transition is done in a careful manner.
The European Commissioner for Energy, Dan Jorgensen, said on Wednesday that he does not expect serious shortages in the short term, but did not rule out supply problems in the longer term.
The CEO of Tui, Sebastian Ebel, moved in the same line, who said that he does not expect fuel shortages in the coming months.
However, Willie Walsh warned that there are still concerns in Britain, mainly due to increased demand during the summer season. "The main problem for the UK is timing," he noted. "July and August typically see a 25% increase in flights and fuel needs compared to March."
As he said, if sufficient alternative supplies are not ensured, shortages may occur at the peak of the summer season. At the same time, he tried to reassure travellers, stressing that there is no reason to panic and that mass flight cancellations can be avoided.
The IATA chief added that even if the Strait of Hormuz were opened immediately, the impact on fuel prices would not subside quickly. "Whichever way you look at it, this problem will continue for several months and may even extend into next year," he underlined.
For its part, the British government said the country's airlines "do not currently see a shortage of aviation fuel", while a government spokesman said suppliers were maintaining safety stocks.
At the same time, London is working with the aviation industry, with the aim of continuing flights normally, while considering measures to help airlines plan their routes realistically, in order to avoid sudden turbulence and problems in passenger holidays.
