Some airlines are cutting fares as nervous travelers delay booking flights amid fears over the Iran war and new EU border checks, according to new research.
Price Reductions on Popular Routes
Analysis by the Financial Times found that between April 9 and May 6, airfares for a week-long trip in July declined for 27 of the top 50 European flight routes to the Mediterranean. Prices dropped by 10% or more for 15 routes, including from Heathrow to Nice, Manchester to Palma, and Gatwick to Barcelona.
This comes despite a surge in jet fuel prices that many airlines have warned will hit their profits. British Airways owner IAG said last week it hoped to offset some costs by increasing fares, but passenger reluctance to book may make it harder for some firms to do the same.
Heathrow Passenger Numbers Fall
Heathrow airport reported passenger numbers fell by 5.3% last month due to the war in the Middle East. The airport said 6.7 million passengers passed through its terminals in April, compared with 7.1 million in the same month last year. The reduction reflects "the ongoing impact of the Middle East conflict on some markets and short-term adjustments to travel plans," the airport said.
Heathrow chief executive Thomas Woldbye said: "We know passengers want certainty when planning their hard-earned summer holidays, so we are supporting government and airlines as they work through their plans to get passengers on their journeys. While we have seen some short term disruption linked to the Middle East conflict, demand for travel remains strong with current fuel supplies stable."
Staycation Boom
The wariness about holidaying abroad has fueled talk of another staycation boom for the UK's tourism industry. Holiday park chain Haven told the Mirror it saw double-digit growth over Easter, with bookings up 10% year-on-year. It also reported significant growth in bookings for the main summer holidays over the past four weeks, with sales up 30% compared to last year.
Simon Palethorpe, Haven chief executive, said: "We're seeing more families than ever choosing to holiday closer to home - better value, less hassle and a brilliant experience. Our team are preparing for what's set to be a record-breaking season by focusing on how we can give all our guests a great time."
