Jet2 and Brittany Ferries have confirmed they will not impose fuel surcharges on summer bookings, even as British Airways' parent company IAG announces price increases to offset rising fuel costs.
Jet2 Removes Surcharge Provision
Jet2, Britain's largest holiday company, has gone a step further by removing the surcharge clause from its terms and conditions, despite never having applied such fees. Chief executive Steve Heapy said: "Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs, and they can have that complete assurance when they book a flight or holiday with Jet2." He added that customers booking now are locking in their price without risk of later cost surprises.
Brittany Ferries Criticises Industry
Christophe Mathieu, CEO of Brittany Ferries, criticised transport companies that have not hedged their fuel requirements. Hedging involves locking in a fuel price months in advance to protect against sudden surges. "I'm quite surprised to hear so many companies in our sector, transport sectors, come up with uncertainty about fuel prices. I would have thought that most of them had hedged," he told The Independent's travel podcast.
Mathieu noted that many firms hedged at around $70 per barrel, while current oil prices are about 50% higher, with aviation fuel costing roughly double pre-conflict levels following US-Israeli attacks on Iran and subsequent reprisals. He said Brittany Ferries had brought forward its fuel purchases, eliminating uncertainty: "We don't need to surcharge because we know what we're going to pay for our fuel for the next months."
IAG Adjusts Pricing
In contrast, IAG, which owns British Airways, Aer Lingus, and Iberia, confirmed it is making pricing adjustments. A spokesperson said: "We are not seeing jet fuel supply interruptions, but fuel prices have risen sharply and, despite our hedging strategy which gives some shorter term mitigation, we are not immune to the impact. Like other carriers, IAG airlines are making some pricing adjustments to reflect these higher fuel costs."
Summer Bookings and Confidence
Mathieu acknowledged that summer bookings are lower than last year, as "a lot of people are worried." However, he reassured customers: "There's no reason not to go on holiday, especially to destinations like France or Spain, which are nearby, beautiful destinations. With us, you don't have to worry about the price. You don't have to worry about being cancelled at the last minute. We're really committed to run at the price we charge today."
Jet2 has hedged much of its fuel needs, and Heapy emphasised the company's commitment to customer certainty. The moves come as some airlines have cancelled flights rather than operate them at a loss, a practice Mathieu described as "bizarre."
