British Airways Owner Warns of Soaring Fares as Fuel Crisis Deepens

(MENAFN) The parent company of British Airways has sounded the alarm over potential airfare hikes, cautioning that a deepening fuel crisis — triggered by the closure of the Strait of Hormuz — is pushing oil costs to levels that may ultimately land on passengers' shoulders.

International Airlines Group (IAG) stated Friday that the ongoing Middle East conflict is driving jet fuel prices sharply higher, warning that despite active fuel hedging strategies designed to absorb cost shocks, the financial strain may still be passed through to travelers.

The group acknowledged it was "not immune" to the broader impact of the crisis, even as it confirmed no direct disruptions to its fuel supply chain have materialized yet.

The warning arrives as oil tankers remain locked out of the Strait of Hormuz, stoking fears of potential shortages rippling across global energy markets. The UK government said it is closely monitoring domestic fuel stocks in response to the escalating situation.

Authorities have already begun rolling out contingency measures — relaxing slot regulations at UK airports to permit airlines to cancel flights without forfeiting prized take-off and landing rights in the event fuel shortages worsen.

Reactions across the industry remain mixed. Budget carrier Jet2 indicated its operations have so far gone unaffected, yet sector officials broadly cautioned that the crisis carries a real risk of flight cancellations and steeper fares materializing within the coming weeks — leaving both airlines and passengers bracing for turbulence ahead.

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