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The comment from the owner of BA comes after Jet2 said it would not introduce surcharges on any booked flights or holidays to cover cost increases

The parent company of British Airways has cautioned that airfares are set to climb as the closure of the Strait of Hormuz, triggered by the Iran conflict, has caused oil prices to surge dramatically.

International Airlines Group (IAG) announced on Friday that the ongoing Middle East crisis will push up the cost of flights to account for soaring jet fuel prices.

Airlines routinely purchase a portion of their fuel in advance at fixed rates to shield themselves from price fluctuations, a strategy commonly referred to as “hedging”.

Despite this, IAG warned that it remained “not immune” to the wider consequences of the Middle East conflict. The group insisted it had yet to experience any disruption to its jet fuel supply, amid growing concerns over potential future shortages as a result of the ongoing hostilities.

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The government is “closely monitoring” fuel stocks as airlines brace themselves for possible shortages, with oil tankers still unable to navigate the Strait of Hormuz. It has also emerged that airports are set to make it simpler for airlines to cancel flights without jeopardising their allocated take-off and landing slots, should fuel shortages prevent them from operating. The Department for Transport (DfT) announced that airlines will no longer be obliged to adhere to the “use it or lose it” rule at UK airports, whereby carriers must utilise at least 80% of their allocated slots during a season in order to retain them for the following year. “Airport Coordination Limited, the independent body that manages slot allocation at UK airports, has updated its guidance so that airlines will not lose their slots if fuel shortages prevent them from flying,” the DfT statement confirmed.

“Airlines can now apply for an exemption from the ‘use it or lose it’ rule in these circumstances.”

Meanwhile, Jet2 has revealed it will not be imposing surcharges on any previously booked flights or holidays to offset rising costs, reassuring customers that the price they book is the price they will pay.

The policy covers all flights and holidays booked through any channel, whether online, via the mobile app, contact centre or through an independent travel agent. Steve Heapy, CEO of Jet2 said: “Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs, and they can have that complete assurance when they book a flight or holiday with Jet2. As a result of today’s announcement, customers booking with Jet2 know that they are locking in their price without additional cost surprises later and we strongly believe that is the right thing to do by them. Ahead of a busy summer this is yet more evidence of why, on top of our incredible holidays and award-winning customer service, nothing beats a Jet2holiday.”

The sharp rise in the cost of jet fuel, driven by escalating tensions in the US-Israel war with Iran, has forced several airlines to hike fares, cut routes and reassess their financial forecasts

Multiple airlines are cancelling flights and introducing new charges as a deepening jet fuel crisis sends shockwaves through the global aviation industry.

Prices have surged dramatically in recent weeks, climbing from roughly $85-$90 per barrel to as high as $150-$200, driven by escalating tensions in the US-Israeli war with Iran.

The sharp rise in costs has now forced carriers to hike fares, cut routes and reassess their financial forecasts. The spike has triggered warnings of major disruption, with International Energy chief Fatih Birol cautioning that Europe could have as little as six weeks of jet fuel supply remaining if the Strait of Hormuz stays closed.

There are more than 30 airlines around the world who say they have been forced to cancel flights or add charges:

AirAsia X – Cut around 10% of flights and introduced a fuel surcharge of roughly 20%.

Air France-KLM – Raising long-haul fares, plus cabin fares by 50 euros per round trip, as well as cancelling flights. KLM, the group’s Dutch arm, is set to scrap 160 European services in the coming months.

Air India – Switching to distance-based fuel surcharges, warning current pricing does not cover rising costs, reports the Independent.

Air New Zealand – Reducing flights through May and June, increasing fares and suspending its full-year earnings forecast.

Akasa Air – Introducing fuel surcharges ranging between 199 and 1,300 Indian rupees ($2 to $14) on both domestic and international routes.

Alaska Air – Increasing checked baggage fees by up to $150 on North American routes, as well as for its Hawaiian Airlines unit.

American Airlines – Raising baggage fees by $10 each for the first and second checked bags and by $150 for the third checked bag, while cutting some economy benefits.

Asiana Airlines – Cutting 22 flights between April and July due to fuel costs.

Cathay Pacific – Cancelling a small portion of flights from mid-May until the end of June and increasing fuel surcharges.

China Eastern Airlines – The airline said it would raise ⁠fuel surcharges for domestic flights from April 5, with flights of 800km and below hit with a 60 yuan ($9) surcharge and a 120 yuan surcharge for flights over 800km.

Delta Airlines – Delta said it would cut capacity by around 3.5 percentage points from its original plan and raise fees for checked bags.

Easyjet – CEO Kenton Jarvis previously said European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.

Greater Bay Airlines – Said it would raise fuel surcharges on most routes from April 1, while keeping them unchanged on mainland China and Japan routes. Its surcharge for flights between Hong Kong ‌and the Philippines will more than double, the carrier said.

Hong Kong Airlines – The airline said it would raise fuel surcharges by up to 35% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal

Indigo – India’s biggest airline said it would introduce fuel charges on domestic and international flights from March 14.

Jetblue Airways – The US-based low-cost carrier said it was increasing fees for optional services such as checked baggage as it experiences “rising operating ⁠costs”. Baggage prices will rise by either $4 or $9, it said.

Lufthansa – Grounding 27 planes early and cutting more aircraft from its fleet.

Norse Atlantic Airways – Axed its London Gatwick to Los Angeles route because of fuel costs.

Pakistan International Airlines – Raising domestic fares by $20 and international fares by up to $100.

SAS – Will cancel 1,000 flights in April after already hiking fares.

Spring Airlines – The airline will raise domestic fuel surcharges from April 5.

Southwest Airlines – Hiking baggage fees to $45 for a first bag and $55 for a second.

SunExpress – The airline will add a temporary 10-euro fuel surcharge on Turkey-Europe routes.

TAP Air Portugal – Said fare rises would soften the blow from higher fuel prices.

Thai Airways – Increasing fares by up to 15%.

United Airlines – United Airlines is scaling back loss-making routes over the next six months. It has also been able to push up fares without seeing a major impact on bookings, chief commercial officer Andrew Nocella said, despite the sharp rise in oil and jet fuel costs.

United is also increasing first and second checked baggage fees by $10 for customers travelling within the US, Mexico, Canada and Latin America, according to Reuters.

VietJet Air – Cut flights on some routes because of fuel shortages.

Vietnam Airlines – plans to cancel 23 domestic flights a week from April. The airline reportedly requested government assistance to remove an environmental tax on jet fuel.

Virgin Atlantic – The airline is adding fuel surcharges to fares and will still struggle to return to profitability this year, its CEO Corneel ‌Koster told the Financial Times.

Volotea – Introduced a pricing policy that could add fuel surcharges of up to 14 euros per passenger.

WestJet – Cutting seats, combining flights and adding a C$60 fuel surcharge on some bookings, according to the Canadian press