An update has been issued by the parent company of British Airways this morning, Friday, May 8. IAG has warned that fuel costs are expected to run approximately two billion euro (£1.72 billion) over budget this year amid the ongoing Iran oil crisis.
New figures reveal that some 120 UK flights have been cancelled this month as jet fuel prices soar and fears over shortages continue to mount. Aviation analytics firm Cirium reported that airlines have scrapped 120 of the 22,613 departures originally scheduled from UK airports in May, representing 0.53%, reports the Mirror.
The number of outbound flights planned for June is 36 lower than it was a week ago, a 0.2% reduction that has seen monthly capacity shrink by 7,972 seats. The final week of May is traditionally a peak holiday period, coinciding with half-term for many schools.
Today, International Airlines Group (IAG) chief executive Luis Gallego said the company is “managing the uncertainty” brought about by the surge in fuel prices by “taking the necessary action on yields, costs and capacity”. He added: “Whilst the impact of the higher fuel price will inevitably lead to lower profit this year than we originally anticipated, we are confident in our business model and strategy.”
Mr Gallego confirmed that IAG is “not currently seeing any jet fuel supply disruptions across our main hubs or markets”. He said the airline remains “confident in fuel availability through the summer”.
Looking at global figures for flights, some 13,005 flights scheduled for May were cancelled between April 10 and April 21, equivalent to 1.5% — slashing capacity by nearly two million seats. Julia Lo Bue-Said, chief executive of Advantage Travel Partnership, a network of independent travel agents, said airlines are “assessing poor performance flights and consolidating or cancelling as required”.
She added that UK departures to popular summer hotspots “remain unaffected” and insisted “customers can continue to book with confidence”. Paul Charles, founder of travel consultancy The PC Agency, said: “Airlines are now being forced to cut flights and make difficult decisions ahead of the peak season.
“It is better for them to cancel flights well in advance so that passengers are less inconvenienced than a last-minute change of plan. As the Iran conflict continues, there will need to be many more cancellations as the jet fuel supply is squeezed.”
Credits: british-airways
