Air travel costs have surged dramatically, with economy ticket prices climbing nearly 25% compared to last year, according to new analysis from consultancy Teneo. The primary driver behind this sharp increase is the ongoing conflict in the Middle East, which has forced airlines to reroute flights around restricted airspace.
"Airspace restrictions caused by the conflict have forced airlines to reroute many flights, increasing the amount of fuel they have to use," the Teneo report states.
This rerouting, combined with broader oil supply disruptions, has sent jet fuel prices soaring from approximately $85-$90 per barrel to between $150 and $200 in recent weeks. Fuel typically accounts for up to a quarter of an airline's operating expenses.
The crisis has also significantly reduced capacity on key long-haul routes, particularly those normally serviced by Gulf carriers whose operations have been heavily impacted. While some rival airlines have expanded services to certain destinations, the overall number of available seats remains below normal levels.
Passengers traveling between Europe and East Asia are feeling the steepest price hikes. For example, a flight from London to Melbourne in June now costs 76% more than it did last year, while a ticket from Hong Kong to London has increased by 72%.
In response to the mounting pressure, UK airlines have issued urgent warnings and demands to the government. Through Airlines UK—a body representing carriers including EasyJet, Ryanair, British Airways, and Virgin Atlantic—the industry has called for several emergency measures.
These requests, detailed in a confidential briefing to ministers and the Civil Aviation Authority, include:
- Classifying delays and cancellations due to fuel shortages as "extraordinary circumstances" to avoid compensation payouts.
- Cutting or suspending Air Passenger Duty.
- Temporarily pausing major emissions trading schemes.
- Easing restrictions on night flights and relaxing rules on airport slot allocations to prevent airlines from losing valuable slots if they cannot operate services.
- Establishing "targeted refinery obligations" to prioritize jet fuel production over other petroleum products.
- Temporarily allowing the import and use of Jet A fuel from the United States.
A spokesperson for Airlines UK emphasized the need for proactive government action: "It is vital that government take the right actions now to ensure the continuation of supply, as well as support the UK aviation industry, which has been impacted by record high jet fuel prices."
The UK Department for Transport responded, stating, "UK airlines are clear that they are currently not seeing a shortage of jet fuel. We continue to work with fuel suppliers, airlines and international counterparts on our contingency planning... Our overriding priority is to de-escalate this conflict, open up the Strait and prevent disruption to passengers."
Analysts note that the inability of many US refineries to produce the specific Jet A1 fuel used in Europe has limited options for replacing supplies currently blocked in the Gulf region. The industry's call for flexibility aims to minimize customer disruption and maintain global flight networks as the geopolitical situation evolves.