As the war in the Middle East continues and causes fuel prices – including jet fuel – to rise sharply, flight prices are also rising, and travelers are reluctant to book flights, writes the BBC.
The Irish low-cost airline Ryanair’s pre-tax profit between April and June fell by 34%, and the company has indicated that prices could be slightly lower than last year, taking into account travelers’ hesitation about air travel.
The price of jet fuel has risen significantly since the start of the war between Israel and the United States in Iran, and although Ryanair reported that it had managed to reach an agreement on fuel costs in the near future, the price of some fuel has more than doubled.
On the 20th of June, the price of crude oil reached 90 dollars per barrel, but then fell slightly. Iran and the United States have been exchanging blows all weekend, and traffic in the Strait of Hormuz The Strait of Hormuz has been suspended again. A temporary peace agreement in June provided a brief respite, but since talks broke down and hostilities resumed, prices have risen sharply again. Ryanair has warned that this year’s figures will be heavily influenced by external factors, such as the escalation of conflict in the Middle East and Ukraine, as well as the price of fuel, which will not be agreed in advance.
Flights for the holiday period between July and September will be slightly lower than last year,
given that many passengers are now booking flights much closer to the departure date. Ryanair’s finance director Neil Sorahan said flights to popular destinations in the Mediterranean were still sold out. He said people were still looking to escape the daily grind, even if flights were booked later.
Russ Mould, investment director at AJ Bell, said Ryanair was better off than its rivals, but “visibility is worse than San Francisco airport when the fog sets in.” He added that the renewed hostilities in the Middle East are not helping, and without a clear solution in sight, the challenges for airlines and the travel sector will continue.
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