‘No need to panic’ on jet fuel, says Iata chief

Higher air fares in Europe are “inevitable” but there is no need to panic about jet fuel shortages, according to the head of the the International Air Transport Association (Iata).

Willie Walsh, Iata director-general, told the BBC there was no way airlines could absorb the extra costs caused by the Middle East crisis and the closure of the Strait of Hormuz.

“He told the BBC there was still concern the industry in the UK could face shortages of fuel over the summer, although he insisted there was no need to panic,” reported the broadcaster.

However, Walsh noted that even if the Strait of Hormuz were reopened tomorrow, the impact of disruption caused by the conflict in the Middle East could still be felt into next year.

A government spokesperson said UK airlines were "clear that they are not currently seeing a shortage of jet fuel", added the report.

Tui Group chief executive Sebastien Ebel said on Wednesday that he did not expect shortages over the coming months.

Commenting on the summer season, Walsh told the BBC: “I think the concern will be that if sufficient alternative supply isn’t sourced, there may be some shortages when we get into the peak summer period.”

However, he stressed that there was no reason to panic, and that widespread cancellation of flights could be avoided.

On price rises, he said: “There may be some instances where airlines will discount to stimulate some traffic flow…but over time it’s inevitable that the high price of oil will be reflected in higher ticket prices.”