Air fares soar by nearly 25% as Iran war forces flights to re-route

A spokesman for Airlines UK said that airlines continue to operate normally and are not currently experiencing jet fuel supply issues, but they remain in close contact with the Department for Transport given the external environment.

The Department of Transport said there is no current jet fuel shortage in the UK and that it is working with fuel suppliers, airlines and international partners on contingency planning to keep people moving while the conflict continues.

Airlines UK submitted a confidential briefing asking for steps such as classifying delays and cancellations due to fuel shortages as extraordinary circumstances to avoid compensation, cutting or suspending Air Passenger Duty, and temporarily suspending emissions trading; it also calls for refinery obligations prioritizing jet fuel and the temporary import of Jet A to the UK.

Airlines operating from the UK warned that the conflict could force them to cut flights and raise fares if it continues or worsens, and urged government action to protect the industry.

President Donald Trump said he did not want to extend the ceasefire, which expires on Wednesday, and that there is not much time to reach a deal; he suggested Iranians could be better off if an agreement is reached with the US.

US media reports that Vice President JD Vance will travel to Pakistan for peace talks; Iran has not confirmed that it will send a delegation.

The biggest impact on ticket prices is on routes between Europe and East Asia. A London–Melbourne flight in June is 76% higher than last year, and a Hong Kong–London flight has risen by 72%.

Jet fuel prices have jumped from about $85-$90 per barrel to around $150-$200 per barrel in recent weeks, with fuel accounting for up to a quarter of airlines’ operating expenses.

Some rival airlines have expanded operations to certain long-haul destinations, but overall seat availability remains below normal.

There has been a significant loss of capacity on long-haul routes normally served by Gulf carriers, whose operations have been heavily disrupted.

The conflict has led to airspace restrictions that compel airlines to reroute many flights, increasing fuel burn and costs.

A new Teneo consultancy report states that the lowest-priced economy tickets are on average 24% higher than they were a year earlier, reflecting the cost pressures from the ongoing Middle East conflict.