Airlines will have to spend an extra $100bn on jet fuel this year, with fares 'inevitably' rising to cover the cost after the war with Iran choked off oil supplies. The International Air Transport Association (Iata) said collective industry profits worldwide would halve to $23bn, as jet fuel prices are expected to be 70% higher across 2026.
Speaking at Iata's summit in Rio de Janeiro, director general Willie Walsh said: 'High oil prices will inevitably mean higher ticket prices. There's just no way to avoid that.' He added that the increase in fuel bills could be 'existential' for some carriers, though concerns about fuel shortages have eased.
British Airways chief executive Sean Doyle said long-haul and business passengers may face the bulk of fare increases. 'A brand like BA, which has got a lot of long haul, a lot of corporate, a lot of premium; we'd expect maybe to have more pass-through of prices than maybe a carrier who's solely competing for leisure short haul,' he said.
Iata warned that the EU's entry-exit system (EES) could create difficulties for travellers this summer, with potential long waits at passport control. The body called on Europe to rewrite legislation to allow flexibility in implementing biometric checks. Rafael Schvartsman, Iata's vice-president Europe, said: 'Normally, we would process a passenger in 20 to 25 seconds, and you're already stipulating that it will take 90 seconds... the probability that people will be waiting in lines for a long time is very, very high.'
