British Airways-owner IAG said on Friday it will raise ticket prices to reflect higher jet fuel costs, but was not seeing interruptions to jet fuel supply.
Airlines like Uk’s easyJet and German tour group TUI have issued profit warnings recently as a result of uncertainty tied to the US-Israeli war with Iran and the subsequent blockage of the Strait of Hormuz.
Air France-KLM said soon after the war began in March that it would add a jet fuel surcharge to some of its tickets.
European airlines have been more shielded than American carriers from rising jet fuel costs thanks to extensive hedging, but the effect will start to diminish in the coming months, making their earnings more vulnerable to fuel-price volatility.
British Airways-owner IAG said in a statement that despite its fuel hedges, it was “not immune” to the broader fallout.
“Flexibility from government, including on (airport) slot alleviation, would ensure airlines can continue to operate as efficiently as possible and manage sustained cost challenges while keeping people and trade moving,” an IAG spokesperson said in a statement.