Richard Branson blames rising flight prices on war, higher oil costs and inflation as Virgin Atlantic adds fuel surcharges.
Branson Calls Iran War ‘Completely Unnecessary’
Virgin Group founder Sir Richard Branson has blamed rising flight prices on wars started by “foolish leaders”. His comments came as tensions in the Middle East continue to affect global travel costs. Branson was making a clear reference to the US-Israel conflict with Iran. According to him, the war was avoidable and has created fresh economic problems.
“The Iran conflict was completely unnecessary,” he told the BBC.
Branson also pointed to the nuclear agreement reached during Barack Obama’s presidency.
“It was working, so there was no need to rip it up,” he said.
He added that the conflict has pushed oil prices higher worldwide.
Higher Oil Prices Hit Air Travellers
Meanwhile, the conflict has disrupted the production and movement of millions of barrels of oil. As a result, the prices of car and jet fuel have jumped. European jet fuel prices show how serious the increase has been. Before the conflict, prices were around $800 (£590) per tonne.
However, they later climbed above $1,800 in April. Prices have since fallen to about $1,450 per tonne. Consequently, airlines have faced higher operating costs. Virgin Atlantic responded in May by adding fuel surcharges to some tickets.
Economy passengers now pay an extra £50. Premium passengers pay £180 more, while business class travellers pay £360.
Airlines Raise Fares and Cut Flights
Virgin Atlantic is not the only airline feeling the pressure. Several competitors have raised fares or reduced flights. A Teneo analysis found that the Iran war pushed air fares up by about 25% in April.
Similarly, Ryanair recently announced plans to reduce its winter schedule. The airline also warned that European short-haul fares could rise sharply. That could happen if jet fuel prices remain high into next summer.
Despite the pressure, Virgin Atlantic does not expect major winter schedule cuts. Chief executive Corneel Koster said the airline expects to operate 95% of its normal schedule. He said some routes could still face cuts if demand drops during winter.
Virgin Atlantic Wins Team GB Olympic Deal
Interestingly, Branson’s comments came as Virgin Atlantic announced a major new deal. The airline will fly Team GB and ParalympicsGB to Los Angeles for the 2028 Olympic and Paralympic Games.
Virgin Atlantic won the contract from British Airways. British Airways had handled the team’s travel since the 2008 Beijing Games.
The new deal gives Virgin another major global spotlight. However, rising fuel costs could still shape the airline’s plans before the Los Angeles Games.
