BRITS have been warned to book their summer getaways now or face a massive spike in prices as the Middle East conflict sends fuel costs soaring.
The boss of easyJet today sounded the alarm after revealing the war has already cost the budget airline £25million in fuel hikes.
The Luton-based carrier has been hit hard by rising oil prices after Iran tightened its grip on tankers passing through the Strait of Hormuz.
Holidaymakers are being told that if these high costs persist, the extra bill will be passed directly onto passengers through higher fares across the entire industry.
EasyJet reported that the conflict has created “near-term uncertainty around fuel costs and customer demand” as families hesitate to book.
Official figures show that bookings for the peak summer months of June through to September have already dipped compared to last year.
The airline is braced for a massive headline loss of between £540million and £560million for the six months leading up to the end of March.
Investors reacted with panic to the news as shares in the company tumbled by as much as 9% in early trading on Thursday.
EasyJet chief executive Kenton Jarvis admitted the firm has struggled.
He said: “Our H1 financial performance worsened year on year, impacted by the conflict in the Middle East and the competitive environment in some markets.”
Despite the gloom, the airline boss insisted that planes are still taking off as normal following the busiest Easter period on record.
He added: “Following our busiest Easter holiday period ever, the operational ramp up into peak summer continues as planned.”
Mr Jarvis claimed the company has the cash reserves to survive the crisis.
He said: “EasyJet’s financial strength from our investment grade balance sheet and £4.7billion of liquidity mean we are well placed to navigate current geopolitical challenges while remaining focused on our medium term targets.”
Experts are worried that the war could eventually lead to fuel shortages and forced cancellations, but the airline insists airports are currently “operating as normal” with supplies secured until mid-May.
Everything now rests on whether the crisis in the Middle East escalates or cools down in the coming weeks.
A quick resolution could see prices drop, but a long-term war could see holiday demand dry up as fuel is rationed around the world.