Virgin Group founder Richard Branson attributed rising airline ticket prices to leaders starting wars, in remarks aimed at the U.S.-Israel conflict with Iran. Branson said the Iran conflict was unnecessary and has driven up oil prices worldwide, contributing to inflation. Virgin Atlantic added a fuel surcharge to tickets in May as jet fuel prices surged.
Branson told the BBC that a nuclear agreement between Iran and other nations negotiated under President Barack Obama had been working and there was no need to abandon it. Middle East tensions have disrupted the production and transportation of millions of barrels of oil, causing prices for car and jet fuels to rise sharply. President Donald Trump has defended the conflict as necessary for long-term peace and security.
European benchmark jet fuel prices, which had been near $800 per ton, peaked above $1,800 in April following the outbreak of war and have since declined to around $1,450. Virgin Atlantic chief executive Corneel Koster said fuel surcharges are required at current price levels. The airline's surcharge added £50 to economy fares, £180 to premium, and £360 to business class tickets.
Industry-wide, the conflict triggered fare increases and schedule cuts. Analysis in April found the war led to a 25 percent increase in airfares. Ryanair this week said it would reduce its winter schedule due to higher fuel costs and warned that European short-haul fares would rise substantially if jet fuel prices remain elevated through next summer. Virgin Atlantic expects to fly 95 percent of its regular winter schedule with only minor adjustments on low-demand routes.