The boss of EasyJet has said holidaymakers should not panic over whether flights will be affected by jet fuel shortages this summer.
EasyJet says fuel supplies remain stable
Kenton Jarvis told the BBC the airline had seen no issues with fuel supplies and that travellers could book with confidence.
The Iran war has led to the effective blockade of the key Strait of Hormuz waterway, normally a major route for Europe’s jet fuel, contributing to a near doubling in fuel prices.
While EasyJet said its supplies were not affected, the airline added that customers were booking flights later because of uncertainty caused by the conflict in the Middle East.
No plans for fuel surcharges
On Wednesday, it emerged that plans to impose a ban on UK imports of diesel and jet fuel made from Russian oil in third countries had been watered down amid concerns over supplies, possible shortage, and rising prices.
However, Jarvis told the BBC’s Today programme: “We’ve seen absolutely no issues with fuel supply in any of our airports in the UK across Europe or indeed beyond.”
He added that the carrier remained in close contact with fuel suppliers, airports and governments, saying they were “equally raising no issues looking forward”.
“I would absolutely say don’t panic about it, at EasyJet we fully intend to fly the summer schedule that we have on sale,” he said, adding that the airline would not introduce fuel surcharges on fares.
Fuel prices remain a concern
Jarvis said fuel production had increased in Norway, West Africa, and the Americas, while “refining capacity for jet fuel has also increased substantially outside of the Gulf region”.
One change EasyJet had seen was a “shortened booking window”, with strong demand for flights departing within the same month.
“As you look further out people are more cautious, people are waiting and watching, but they are booking… and I expect that strong late booking market to run through the summer,” he said.
Airline warns of profitability impact
His comments came as EasyJet reported a pre-tax loss of £552m for the six months to March. Airlines typically make losses during the winter before relying on the peak summer season for profits.
The airline reiterated that its financial performance in the second half of the year would be affected by higher fuel costs and uncertainty over customer demand.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said EasyJet was “one of the more sensitive European airlines to fuel price fluctuations”.
“The recent spike in fuel prices looks set to take a big toll on profitability,” he said. “Even if the Middle East conflict is resolved in the near term, fuel prices are likely to remain elevated for some time.”
Source: BBC
Also read: Gaza aid boat Vivy Sabre remains in Paphos harbour
For more videos and updates, check out our YouTube channel
