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PRESS: BA warns fares may rise further if fuel costs stay high

ALN

International Consolidated Airlines Group SA’s British Airways may raise ticket prices further if elevated fuel costs persist, as Chief Executive Sean Doyle warned that airlines continue to face mounting fuel expenses linked to the conflict in the Middle East, the Financial Times reported.

‘There’s no getting away from if fuel goes up, fares have to go up,’ Doyle told the newspaper on the sidelines of the International Air Transport Association annual meeting in Rio de Janeiro.

According to the FT, jet fuel prices have doubled since the conflict involving Iran began in February.

Traffic through the Strait of Hormuz, a key route for jet fuel supplies to Europe, remains severely disrupted despite ceasefire discussions.

Doyle said British Airways had already increased fares to offset higher fuel costs but indicated further rises could be necessary if prices remain elevated. The airline is expected to pass through more of the cost increases on long-haul routes, particularly those serving business travellers, the report said.

Doyle told the FT that flights to the Gulf are expected to resume in the coming months, although services to Dubai are not scheduled to restart until October.

Doyle also urged the UK government to reduce taxes on tourists, arguing that Britain has become less competitive than countries such as France and Spain in attracting visitors.

He criticised increases in air passenger duty and said the UK would need to improve affordability if it is to meet its target of attracting 50 million tourists annually, the FT reported.

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