British Airways proprietor to boost air fares as gasoline soars

British Airways owner IAG will increase ticket prices as the cost of jet fuel soars.

The airline giant, which also owns Aer Lingus and Iberia of Spain, has joined other operators in hiking prices as disruption to the key Strait of Hormuz raises energy costs.

IAG said it was not immune to the impact of fuel prices having ‘risen sharply’, despite it having already locked in some costs.

‘Like other carriers, IAG airlines are making some pricing adjustments to reflect these higher fuel costs,’ it added.

The warning follows budget airlines Ryanair and Easyjet saying that passengers should expect higher prices towards the end of the summer.

Disruption caused by rerouting flights due to the war has resulted in the lowest-priced economy tickets costing 24 per cent more than they did a year ago, according to research by consultancy Teneo.

The average cost of a barrel of jet fuel has more than doubled in a year, to £137 per barrel, says the International Air Transport Association. Fuel makes up as much as a quarter of operating costs.

There are also worries over cancellations. German airline Lufthansa said this week it would slash 20,000 European flights as they were no longer profitable.

And travel giant Tui this week said the war had cost it £35m, and cut its profit guidance as consumers delay bookings.