Meanwhile, jet fuel was $4.24 (£3.21) a gallon last Thursday, compared with $2.50 (£1.89) just before the first US-Israeli strikes on Iran, according to the Airlines for America group.
Aviation analyst Alex Macheras said the US Jet Fuel Index was up 72 per cent in one month since the war began, which was ‘massively outpacing even Brent crude’s rise’.
About 40 per cent of Europe’s jet fuel comes via the Strait of Hormuz, which is nearly completely closed. The UK receives supplies direct from the Middle East while additional supplies come in indirectly, especially via Belgium and the Netherlands.
Industry experts now fear the supply issues could have a major impact on airlines from the end of next month if the Iran war continues.
Mr Macheras cited how United Airlines said jet fuel prices have more than doubled in three weeks – and if such a trend continues, its annual fuel bill would hit $11billion.
This would be more than double the airline’s best-ever annual profit. Mr Macheras also pointed out that New York to London fares were up 177 per cent in a week.
He tweeted: ‘A serious jet fuel shortage is less than a week away across multiple different markets, including at some major European airport hubs – who are informing airlines to prepare for a potential ‘no-fuel available here’ scenario.
‘This is not a Europe problem – international airlines from Asia, South America, Africa etc are working on contingency plans which include attempted fuel stops en route to/from destination as jet fuel shortage worsens to unprecedented levels and the price continues to surge.’
A UK Government source told the Daily Mail today that there was no current disruption to jet fuel supply, adding that most airlines purchase it in advance to offset price fluctuations.
Ministers are said to be trying to encourage airlines to do what they can to ensure tickets remain fairly priced for passengers, and are working with the aviation industry to monitor the situation.
Britain received a jet fuel cargo from Nigeria at Milford Haven in Pembrokeshire yesterday, and the Government has insisted people should book their summer holidays as normal and not worry about supply issues.
But shadow transport secretary Richard Holden has criticised Labour’s ‘energy failure’ amid growing fears of shortages.
The senior Tory MP said: ‘Labour’s energy failure is wrecking the Easter getaway before families have even packed their bags, grounding holidays and sending air fares into the skies.
‘As conflict in the Middle East drives jet fuel prices higher, airlines will pass those costs straight on to British families already being hammered by Labour’s hikes to air passenger duty and airport business rates.
‘This is the direct consequence of Labour’s Net Zero obsession, destroying our energy security with real and tangible consequences for people up and down the country.
‘Britain is left exposed, families are left paying, and Labour sit on their hands as the dream of a family holiday vanish.’
Sir Keir will gather ministers and officials for a meeting of the Government’s emergency Cobra committee today to look at contingency plans for potential shortages of jet fuel as well as diesel and fertiliser.
Yesterday, he appealed to oil and banking executives to help Britain deal with a looming 1970s-style energy shock and warned: ‘The Government can’t do it on its own’.
Sir Keir also said he was focused on ‘de-escalation’ of the crisis that has led to the blocking of the Strait of Hormuz, which normally carries 20 per cent of the world’s oil.
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Cruise lines are now charging passengers up to £19 a day for fuel surcharges
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The price most households pay for energy under regulator Ofgem’s cap will fall by £117 to £1,641 a year from tomorrow, driven by the Government’s promise to cut bills by an average of £150 by removing green subsidies.
However, energy analyst Cornwall Insight said its prediction for the cap from July to September now stands at £1,929 for a typical dual fuel household – an increase of £288 or 18 per cent on April’s cap.
It said a hike in energy bills this summer is ‘pretty much unavoidable’ – warning an even greater hit to household finances could come in October.
The Chancellor has said work is under way for targeted support for households, but she has been accused of only planning help for those on benefits.
This would be in contrast to the universal support provided by the previous Tory government in 2022, when Russia’s invasion of Ukraine caused energy bills to soar.
The Conservatives are urging Ms Reeves to slash household energy costs by £200 immediately by taking VAT, taxes and levies off energy bills.
United Airlines CEO Scott Kirby has said the airline is modelling Brent oil as high as $175 a barrel and remaining above $100 through 2027.
Under that scenario, United’s annual fuel bill would rise by roughly $11billion — more than twice its best-ever annual profit.
Fuel accounts for about a quarter of airline operating costs, and airlines sell tickets weeks or months in advance, leaving them exposed when prices move faster than fares can follow.
Credit ratings agency Moody’s said low-cost and ultra-low-cost carriers in the US would be hit hardest if fuel prices stay high.
Had Brent averaged $80 a barrel last year instead of $69, Moody’s said, operating profit across rated US airlines would have fallen by roughly half, to about $6billion.
A spokesman for the Department for Energy Security and Net Zero said: ‘Jet fuel shipments are continuing to arrive in the UK.
‘The UK receives imports of jet fuel from India, USA and the Netherlands as well as smaller amounts from a range of other countries.’
Asked at a press conference this morning about reports Mr Trump might end his military campaign, Mr Farage said he ‘very much doubts those rumours are true’.
‘I don’t think we should take literally anything right now that Donald Trump says, or is said about Donald Trump,’ he said.
‘The last thing he’s going to do, or the last thing his colleagues in the White House are going to do, is to give the Iranians any idea of what their true intentions are, and frankly, I don’t know.
‘Was it to remove nuclear capability? Was it aimed at regime change? I don’t think any of us quite know the absolute truth about that.’
He said that if Mr Trump were to walk away and oil prices remain high, ‘that would be, politically, not the way he or his Republican colleagues would want it to end’.
He added: ‘Trying to read what’s really in the minds of people in the White House right at the moment, pre-guessing that, is a bit of a mug’s game right now.’
How the war is impacting flights across the world: What airlines are doing as jet fuel costs surge
A surge in jet fuel prices driven by the US-Israeli war on Iran has upended the global aviation industry, forcing airlines to raise fares and revise financial outlooks. Here is how airlines have been responding so far this month:
AEGEAN AIRLINES: The Greek airline expects suspended Middle East flights and a spike in fuel prices to have a ‘notable impact’ on its first-quarter results.
AIR FRANCE-KLM: The airline group said it planned to increase long-haul ticket prices to address surging fuel costs, with cabin fares set to rise by 50 euros ($57) per round trip.
AIR NEW ZEALAND: The airline was one of the first to announce broad increases to ticket prices on March 10. It also suspended its full-year earnings forecast due to fuel market volatility. The price increases for one-way economy fares are set at NZ$10 ($6) on domestic routes, NZ$20 on short-haul international services and NZ$90 on long-haul flights, with further price, network and schedule changes possible if fuel costs remain elevated.
AKASA AIR: India’s Akasa Air said it was introducing a fuel surcharge ranging between 199 and 1,300 Indian rupees ($2 to $14) on domestic and international flights.
AMERICAN AIRLINES: The US carrier said it expected a $400 million increase in first-quarter expenses as fuel prices surge.
CATHAY PACIFIC: The Hong Kong airline said it would raise fuel surcharges on all routes from April 1, its second increase in about two weeks after a March 18 hike, and review them every two weeks. The carrier, which reviews fuel surcharges monthly, kept them steady last month at $72.90 for flights between Hong Kong and Europe or North America.
CEBU AIR: The Philippines-based airline said the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the impact.
EASYJET: EasyJet CEO Kenton Jarvis said European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.
GREATER BAY AIRLINES: Hong Kong-based Greater Bay Airlines said it would raise fuel surcharges on most routes from April 1 due to higher fuel prices linked to the Iran war, while keeping charges unchanged on mainland China and Japan routes. Its surcharge for flights between Hong Kong and the Philippines will more than double, the carrier said.
FRONTIER AIRLINES: The US airline is reviewing its full-year forecast as fuel prices have increased significantly since it issued the outlook.
HONG KONG AIRLINES: The airline said it would raise fuel surcharges by up to 35 per cent from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 ($49) from HK$284.
IAG: British Airways-owner IAG said on March 10 it did not plan to increase ticket prices immediately, as it has hedged much of its fuel for the short- to medium-term.
INDIGO: India’s biggest airline said it would introduce fuel charges on domestic and international flights from March 14, including a charge of 900 rupees for flights to the Middle East and a charge of 2,300 rupees for flights to Europe. The company is also lobbying the Indian government to cut fuel taxes, sources told Reuters.
JETBLUE AIRWAYS: The US-based low-cost carrier said it was increasing fees for optional services such as checked baggage as it experiences ‘rising operating costs.’ Baggage prices will rise by either $4 or $9, the company said.
PAKISTAN INTERNATIONAL AIRLINES: The carrier said it would raise domestic flight fares by $20 and international fares by up to $100, citing higher fuel surcharges.
PHILIPPINE AIRLINES: The airline said it had adequate fuel supply to support scheduled operations, but did not have visibility beyond May to June. Company president Richard Nuttall told CNBC the Philippines might eventually consider measures such as rationing how much fuel airlines can purchase, which a few countries have already implemented.
QANTAS AIRWAYS: The Australian airline, which had already said it would raise international fares, said on March 26 it would add flights to Rome, Paris and Singapore. It said it was monitoring fuel security, fuel prices and demand, and could make further changes.
SAS: The Scandinavian airline said it would cancel 1,000 flights in April because of high oil and jet fuel prices. For March, it said it had cancelled a ‘couple hundred’ flights. SAS, which had already increased flight prices, said that even if it tried to absorb the rising fuel costs, the price surge would still be a blow to the aviation industry.
SPRING AIRLINES: The budget Chinese airline said it would raise fuel surcharges on domestic flights from April 5, with details to be announced later.
THAI AIRWAYS: The Thailand-based carrier said it would raise fares by 10 per cent to 15 per cent to address rising fuel costs.
TURKISH AIRLINES, LUFTHANSA: SunExpress, a joint venture between Turkish Airlines and Lufthansa, said it would impose a temporary fuel surcharge of 10 euros ($11.46) per passenger from May 1 on routes between Turkey and mainland Europe. The surcharge will apply to bookings made on or after April 1 for departures on or after May 1.
UNITED AIRLINES: The US airline is cutting unprofitable flights over the next two quarters as it prepares for oil prices to remain above $100 until the end of 2027, CEO Scott Kirby said. United has been able to raise fares without materially hurting bookings in response to the rapid increase in oil and jet fuel prices, Chief Commercial Officer Andrew Nocella said.
VIETJET: The Vietnamese budget airline said it had adjusted flight frequency on selected routes due to potential fuel shortages.
VIETNAM AIRLINES: The carrier plans to cancel 23 flights per week across domestic routes from April, Vietnam’s aviation authority said, after the airline requested government assistance to remove an environmental tax on jet fuel.
VIRGIN AUSTRALIA: Virgin Australia said it was adjusting fares to reflect rising cost pressures across the aviation sector, which it said were being significantly exacerbated by the situation in the Middle East.