Book flights now or face price rises if Middle East conflict continues, says easyJet boss
Price increases to start ‘in three weeks’ unless situation calms
Prolonged conflict would see prices rise as fuel becomes more expensive
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Travellers who know their summer plans should book flights now to avoid price rises related to the ongoing conflict in the Middle East, says Kenton Jarvis, easyJet’s CEO. He said price increases are only weeks away if the situation does not ease.
It comes as holiday trends are also being impacted by the conflict, with more people looking to spend Easter holidays at destinations far away from the conflict zone.
While issues are not immediately apparent in the sector, prolonged war would see prices rise as fuel supplies became more expensive for airlines. The closure of air space in the Middle East also limits ticket sales reducing revenue.
“We obviously stay in contact with all the airports and our suppliers, and that’s not presenting an issue right now. But it does depend, obviously, how long this lasts,” Mr Jarvis said to the UK’s The Telegraph.
“The reality is, as you look further forward, and the hedges [protection companies take to lock in future fuel costs] start reducing in size, I think the message would be book as early as possible, because that will start feeding in at some stage.”
“My expectation is that prices go up. The industry has no choice. We make about £7 a seat and if fuel goes up by £10 then you do something about that. No one is going to take an extra £10 of costs and do nothing.”
For his part, head of Ryanair Michael O’Leary said: “The longer [the conflict] goes on, the bleaker it will look,” for the sector, but prices for seats with the Irish carrier are unlikely to rise if hostilities cease “in the next month or two.”
While many European carriers are yet to raise prices, other international airlines have already done including Thai Airways, Qantas, Air Asia, and several US airlines.
While much holiday travel has so far been spared immediate increases, drivers in France and across the world are facing sustained price rises at the pumps.
Will France see summer tourism boost?
It is too early to make definitive assumptions on summer holiday travel, but European destinations may see increased demand if travel options are limited by the conflict.
UK travel agencies, for example, note an increase in demand for Easter holiday travel to resorts in Portugal, Spain, and Morocco, significantly further away from the conflict than resort-based destinations such as Egypt and Cyprus.
If a prolonged conflict ensues and air space over the Middle East corridor is limited for a longer period, European holidaymakers who would have otherwise opted for more exotic destinations (Dubai, Thailand, Australia, etc), may instead choose to spend holidays closer to home.
France recently retained its crown as the world’s most popular tourist destination, and it is possible that holidaymakers opt to visit the country if other plans are disrupted.
