Virgin Atlantic raises its ticket costs by as a lot as £360 amid warnings jet gasoline may run out within the ‘close to future’ on account of Iran conflict

Virgin Atlantic has hiked ticket prices to as much as £360 amid warnings that jet fuel could run out ‘in the near future’ as the Iran war continues to rage on. 

The airline, founded by Sir Richard Branson, has placed an extra £50 fuel surcharge on economy tickets, with both premium economy and business class fares increasing by £180 and £360 respectively.

Virgin’s chief executive, Corneel Koster said recent failed peace talks between the US and Iran ‘was not good news’ for the air industry, as he warned travellers will face further increased prices for the next few months – and possibly the rest of the year.  

‘We have never seen jet fuel at this level, and airlines cannot sustain those sorts of high costs,’ he said in an interview with The Financial Times. 

‘If the fuel price goes much higher, I think the surcharges may go higher. If they go up in a week and you book in two weeks’ time, you’ll be paying higher.’

The airline boss also predicted the sale of economy seats becoming ‘relatively weaker’ in comparison to business class tickets as the crisis in the Middle East continues to tighten people’s purse strings. 

It comes as jet fuel prices have surged with the Strait of Hormuz being blocked by Iran since war broke out on February 28. Around 20 per cent of global oil and liquefied natural gas supplies pass through the strategic passage in the Gulf.

Meanwhile, data has indicated Brits are already cutting back on their holidays since the war erupted, as they reduced spending on trips abroad last month for the first time since the COVID-19 pandemic. 

European airports have also warned of fuel shortages in around three weeks, increasing the likelihood of flight cancellations. 

Virgin have also refused to divulge if they will be axing routes due to the skyrocketing price of jet fuel, coupled with a slump in demand. 

So far, the firm has avoided significant changes to its network besides cancelling its winter-only services to Dubai as well as journeys to Riyadh. 

Mr Koster said Virgin had to adjust so it did not lose ‘unnecessary amounts of money on weaker routes and frequencies’. 

The UK, in particular, is dependent on jet fuel from the Middle East, with Kuwait sending four million tons in supplies annually to Britain. 

However, a slew of attacks on Kuwait’s Mina Al-Ahmadi refinery has meant that even if the Strait were to open once again, it may not be able to meet demand. 

Elsewhere, the European Commission has also been concerned about a lack of jet fuel supply in the near future.  

‘There is no evidence for fuel shortages in the European Union at present, but supply issues could occur in the near future in particular for jet fuels,’ said spokeswoman Anna-Kaisa Itkonen.

‘That remains our primary concern,’ she told reporters.

The airports lobby ACI Europe warned the commission of a risk of ‘systemic’ jet fuel shortages if maritime traffic is not restored in the Strait of Hormuz by the end of April.

Europe could start seeing physical shortages of jet fuel by June if the region can only replace half of the fuel supplies it usually receives from the Middle East, the International Energy Agency said in its monthly report. 

Global jet fuel and kerosene demand averaged 7.8 million barrels per day in 2025, with Gulf exports the largest source to the global market, averaging nearly 400,000 barrels per day (bpd), the report added.

Europe is the most dependent on jet fuel from the war-torn region, with the Middle East accounting for 75 per cent of Europe’s net jet fuel imports.

Within Europe, levels of stockpiled fuel vary from country to country. Spain, with plentiful stocks, is a net exporter of jet fuel, while Britain, which is also the Middle East’s largest consumer, imports 65 per cent of its demand. 

If Europe manages to replace all of its Middle East imports and volumes, jet fuel stocks will adequately cover the IEA’s assessment of 2026 demand.

But if stocks of jet fuel were to drop below 23 days of demand cover, physical shortages and demand destruction would occur at select airports. 

Europe’s stocks have not dropped below 29 days’ cover since 2020.

If the continent can only replace 75 per cent of its Middle East volumes, there would be insufficient inventory to meet demand in the summer, and stocks would drop below the 23-day level by August. 

But if only 50 per cent of the supply is replaceable, then stocks will hit the 23-day level in June.

The conflict has upended routes between Asia and Europe that relied on Gulf hubs, while a doubling of jet fuel prices and tightening of supplies are hitting airlines hard.

Since the US-Israeli strikes on the Islamic Republic began, carriers have hiked air fares, introduced ​fuel surcharges and cut routes.

Now, Qantas Airways has warned ‌of spiralling costs, while Lufthansa said it may have to ground planes, and Virgin Atlantic flagged a looming supply crunch.

Qantas has also delayed a planned share buyback, citing higher and volatile fuel prices, one of the first ​major carriers to stall shareholder returns. 

Lufthansa CEO Carsten Spohr warned that jet fuel supplies will remain constrained, driving up costs. 

‘Kerosene will remain ⁠in short supply and therefore more expensive for the rest of the year,’ Spohr told German newspaper Frankfurter Allgemeine Zeitung. 

Lufthansa has not yet grounded planes due to shortages, ​but this ‘may be unavoidable’ as kerosene availability is already critical at some airports, particularly in Asia.

The crisis comes amid the introduction of new EU border rules – the Entry/Exit System (EES) – which requires travellers from third-party countries, including the UK, to have their fingerprints and photos taken as they enter the Schengen area, contributing to long delays. 

Further checks take place when tourists attempt to fly home, and because these can take hours, some travellers have been stuck at passport control after their flights have already left.

Passengers travelling across Europe were hit by delays and cancellations over the weekend, with long queues forming at destinations including Geneva, Lisbon and Malta – while others faced two-hour waits yesterday in Brussels and Amsterdam.

Rory Boland, editor of Which? Travel, said delays caused by the EES could be ‘significantly worse over the summer’, and urged travellers concerned about jet fuel shortages to book a package holiday, which should be refunded if a flight is axed. 

In South Korea, low-cost carrier T’way Air plans to furlough some cabin crew without ​pay in May and June, among the first carriers to reduce staffing.

A two-week ceasefire has provided little relief, with the Strait of Hormuz still shut, removing 20 per cent of global oil and liquefied natural gas supplies from the market and refineries will take time to repair damage inflicted on them.

‘Despite the pause in the conflict, we remain concerned about jet kerosene supply and price ​increase,’ UBS analyst Jarrod Castle said on Tuesday, adding that December jet kerosene futures prices are still up more than 50 per cent year-on-year. 

Fuel, typically airlines’ second-largest cost after ​labour, accounts for about 27 per cent of operating expenses. 

Prices have more than doubled since the conflict began, far outpacing a roughly 50 per cent rise in crude oil prices before the ceasefire.

It comes as analysts and executives have suggested the crisis may spark mergers between airlines. 

Reuters reported on Monday that United Airlines CEO Scott Kirby pitched the potential for merging with American Airlines days before the US-Israeli strikes on Iran.

Flight capacity, in particular from the Middle East but also into Europe, has shrunk and is not projected to recover to pre-conflict levels anytime soon, according to analysts.

European airlines ​on Tuesday urged Brussels to step in ⁠with emergency measures to cushion the impact, including EU-level kerosene purchasing, a temporary suspension of the bloc’s carbon market for aviation and scrapping certain aviation taxes.  

Industry group Airports Council International Europe (ACI) warned last week that Europe could face a systemic jet fuel shortage in three ​weeks. 

Several carriers, including SAS, are not hedged, leaving them fully exposed to soaring fuel costs. Delta Air Lines last week said ​its jet fuel bill ⁠this quarter would be some $2 billion more than last year.

While Qantas has hedged much of its crude exposure, it remains significantly exposed to the spike in jet fuel spreads.

To offset rising costs, the Australian flag carrier is raising fares and shifting capacity toward stronger routes such as Europe, where demand remains firm, while cutting back on domestic journeys by about five percentage points in the June ⁠quarter.

Lufthansa’s Spohr said ​record revenues on Asian routes were also helping offset the impact of rising kerosene costs.

But the airline ​has prepared contingency plans, including cutting its capacity by 2.5 per cent or five per cent and grounding 20 to 40 older, less fuel-efficient aircraft earmarked for early retirement.