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EasyJet warns that the Iran War will increase ticket prices by the end of summer

The CEO of easyJet, a discount airline, said on Monday that ticket costs will increase 'towards the end of summer due to the Iran War. He added that this conflict is driving people to Spain instead and away from Turkey or Cyprus.

By the end of summer, the British carrier will have re-evaluated its fuel hedges. Ticket prices may increase depending on fuel prices.

"The reality is prices will start to feed through?to consumers towards the end of summer," said CEO Kenton Jarvis, as the airline launched a new base at Newcastle Airport in northeast England.

Bookings shift away from the Eastern Mediterranean

Jarvis stated that the war, which is now in its fourth weeks, has already affected bookings. Customers are clearly avoiding booking trips to Turkey and Egypt, as well as Cyprus, where an Iranian drone struck a British military base in early March.

He said that the east Mediterranean was less popular and the west Mediterranean was more popular. EasyJet has not made any changes to its capacity but it could reduce flight frequencies for destinations with multiple daily flights.

Air France-KLM, SAS and Finnair have all already announced that they would have to increase ticket prices due to the closure of the Strait of Hormuz.

EasyJet announced in January that it had hedged 84% of its fuel requirements for the first six months of 2026. 62% of the fuel for the second half, and 43% of the fuel for the first six months of 2027. The average cost was $715, $688, and $671 for each metric ton.

Jarvis stated that he did not see any issues with the?supply, and easyJet is managing fuel price volatility by "business as usual through cost management."

The market is expecting prices to drop. Will the price come back to what it was? ... He said that he didn't know, but noted that fuel for delivery in six months is still available at a price of under $1,000, even though the spot?price was around $1,800.

He said that the future of the conflict was still uncertain, and it is unclear what effect the conflict will have on demand in the long-term. Following the outbreak, there was a drop in bookings for six weeks following the Ukraine war.

(source: Reuters)