Britons may need to change their summer holiday plans due to the jet fuel crisis, Prime Minister Sir Keir Starmer has warned, as a surge in UK staycations continues. Speaking on The Cathy Newman Show on Sky News, Sir Keir said people might reconsider 'where they go on holiday this year' if the conflict in Iran continues to impact airlines, which have already been raising fares and fees.
This intervention goes further than the Government's previous messaging, which had stated there was 'no current need to change upcoming travel plans.' When asked whether summer holidays could be in jeopardy, Sir Keir said: 'We'll see how long the conflict goes on. I can see that, if there's more impact, people might change their habits, where they go on holiday this year, what they're buying in the supermarket, that sort of thing.'
Jet fuel prices soar
According to the latest International Air Transport Association data, the jet fuel price increased from about $99 (£73) per barrel at the end of February to as high as $209 (£155) at the start of April, although it has fallen in recent weeks to $179 (£132). Uncertainty over foreign travel has seen bookings soar for staycations this summer, with Airbnb reporting a 15 per cent rise in searches for UK breaks compared to 2025. Haven holiday parks saw a 10 per cent rise in bookings over Easter, while Sykes Holiday Cottages reported an 18 per cent increase for the period.
Government response and military mission
The Prime Minister, who will lead a meeting of the ministerial Iran crisis committee today, urged Britons not to panic over the economic impact of the Iran war. He said 'at the moment' the Government was confident about supply chains and was doing 'everything we can' to reopen the Strait of Hormuz, the vital oil and gas shipping route effectively closed by Iran since the US-Israeli strikes began. Sir Keir said the French and British would lead a 'military mission' to provide reassurance to ships passing through the strait, although the initiative with French President Emmanuel Macron is not expected to begin until hostilities cease.
He added: 'There is going to be an impact on the UK. There already is. And I think it's really important that I level with the public that we are doing everything we can to get the Strait of Hormuz open, because obviously that is vital in terms of minimising the impact. But I don't want anybody to think that, once the Strait is open, that that's the end of the damage. It will go on longer than that.'
Impact on airlines and travellers
Jet fuel is typically one of the largest expenses for airlines, leaving them especially vulnerable to price spikes and supply shocks. In response, carriers worldwide have raised fares and fees. European airlines have taken various measures:
- Aegean Airlines expects suspended Middle East flights and a spike in fuel prices to have a 'notable impact' on first-quarter results.
- Air France-KLM plans to increase long-haul ticket prices, with cabin fares rising by €50 (£43) per round trip. KLM will cancel 160 flights in Europe in the coming month.
- EasyJet warned of a bigger half-year pre-tax loss of between £540 million and £560 million, including £25 million in extra fuel costs in March.
- IAG (British Airways owner) said it does not plan to increase ticket prices immediately due to strong hedging, but is not immune to impacts.
- Lufthansa will remove 20,000 short-haul flights through October, equivalent to about 40,000 metric tons of jet fuel.
- Ryanair's boss Michael O'Leary said suppliers can guarantee supplies until May, but nobody is sure about June.
- SAS will cancel 1,000 flights in April due to high oil and jet fuel prices.
- TAP said price hikes will partially mitigate fuel price impacts.
- TUI cut its full-year underlying profit outlook and suspended revenue guidance, citing about €40 million (£35 million) in extra costs in March.
- SunExpress (Turkish Airlines and Lufthansa joint venture) will impose a temporary fuel surcharge of €10 (£9) per passenger from May 1 on routes between Turkey and mainland Europe.
- Virgin Atlantic is adding fuel surcharges but will still struggle to return to profitability this year.
- Volotea introduced a new pricing policy linking ticket prices to fuel costs, potentially adding a post-purchase surcharge of up to €14 (£12) per passenger per flight.
Long-term effects and reassessment
Wizz Air's CEO Jozsef Varadi said the airline is 70 per cent hedged for summer fuel needs and will receive 35 new Airbus aircraft during 2026. He does not think jet fuel will run out in coming weeks, but prices could remain high for months after the war ends. He called for Europe to reassess its reliance on the Middle East for fuel, stating: 'If you look at the very nature how Europe is accessing jet fuel, I mean, we are far over-dependent on the Middle East. I mean, that's kind of crazy.'
Today's meeting of the Middle East Response Committee (Merc) will be attended by senior ministers and representatives from the Bank of England. The Government previously warned that the economic impact could last for eight months after the war's end. Foreign Office minister Stephen Doughty told the UN Security Council that US President Donald Trump and Sir Keir had discussed 'the urgent need to get shipping moving again,' adding: 'This crisis is not just affecting international shipping, it is driving up costs and sending shockwaves throughout energy markets and supply chains far beyond the region with impact for all of our citizens, our communities and their cost of living. So, we must get the Strait reopened fully and unconditionally.'
Oil prices hit a near three-week high yesterday after hopes of progress on peace negotiations collapsed. Talks between the US and Iran had been expected in Pakistan before Mr Trump declared envoys would no longer travel due to a lack of progress. Iranian officials offered to end the country's closure if the US lifted its blockade, ended the war and postponed nuclear talks, a proposal Mr Trump seemed unlikely to accept. US secretary of state Marco Rubio told Fox News that Iran's nuclear programme is a 'core issue' that must be addressed.
The Daily Mail has contacted the Department for Transport for an updated statement. Its most recent statement on April 24 says: 'There is no current need to change upcoming travel plans. Since the closure of the Strait of Hormuz, we have been closely monitoring UK jet fuel stocks and working with airlines, airports and fuel suppliers to ensure passengers keep moving and businesses are supported. Government regularly meets with industry to monitor risks, understand pressures and ensure clear communication with passengers, should circumstances change. We recognise that families may be concerned, and that aviation and tourism businesses are operating in challenging global conditions. We are working hand in hand with industry to help flights keep operating.'
