EasyJet has issued a new update on ticket prices and flight cancellations amid the global fuel crisis. Some airlines have been forced to raise ticket prices due to rising jet fuel costs, with Air France and KLM among those that have raised fares.
Kenton Jarvis, easyJet chief executive, said that pricing remains “competitive” and stressed that demand for flights in the three months to the end of September will “very much depend” on the late summer market. However, he accepted that what happens in the Middle East conflict in the next week or two would also have an impact.
EasyJet has reported that bookings are down two percentage points for the three months to the end of both June and September compared with sales from one year ago.
Kenton has refused to rule out future price rises on seats, simply warning that fares “remain competitive”. Concerns have been raised that some flights will be forced to cancel flights if airlines grapple with jet fuel shortages.
The IEA explained that Europe previously relied on Middle Eastern imports for as much as 75% of its jet fuel. The group stressed that “physical shortages may emerge at select airports, resulting in flight cancellations” if Europe were unable to replace more than 50% of Middle East fuel.
However, Kenton has warned that EasyJet bosses are not concerned about the situation at this stage in a boost to customers.
He said: “We only ever in this industry have three to four weeks visibility (of jet fuel supplies), and that is the same as it was pre-crisis. We have visibility to the middle of May, and we have no concerns. What we’re seeing is airports and fuel suppliers working well to bring jet fuel to the airports.”
European jet fuel price hit an all-time high of $1,838 (£1,387) per tonne at the start of April, a staggering rise on the $831 (£613) just before the disruption in the Middle East began.
A Government spokesperson said: “We continue to engage with British airlines to support their operations against the backdrop of war in the Middle East, and to limit the impact on passengers.
“Most airlines purchase their aviation fuel in advance to offset price fluctuations, however we are aware of the impact to businesses, and are working with international allies to see a reopening of the Strait as soon as possible.”