Spain's tourism minister has issued a warning to British holidaymakers, advising them to book their summer flights as soon as possible to avoid anticipated price increases driven by rising oil costs.
Minister warns of price fluctuations
Jordi Hereu, Spain's Industry and Tourism Minister, told Spanish news outlet Expansion on April 27 that growth in the tourism sector could be hampered by higher flight costs. Spain welcomed 97 million tourists last year and was expected to reach 100 million in 2025. Hereu recommended that people purchase tickets now, noting that airlines are currently using kerosene bought some time ago, which introduces an element of price fluctuation. He acknowledged that prices have already risen and this could affect demand.
Fuel shortages and cancellations
Hereu reassured holidaymakers that authorities are working to prevent fuel shortages as the busy summer season approaches. However, he warned that if countries sending tourists to Spain face problems, Spain would also suffer. Many airlines have been forced to cancel flights this spring and summer due to rising jet fuel costs, a consequence of the closure of the Strait of Hormuz following the Israeli and US attack on Iran.
UK Prime Minister Keir Starmer said the UK is doing everything possible to reopen the Strait but cautioned that even after reopening, the damage will persist. He noted that people might change their holiday habits and shopping choices due to the impact. Virgin Atlantic's chief executive Corneel Koster told the Telegraph that jet fuel prices have more than doubled, reaching levels never seen before, and that the industry cannot absorb such increases.
Impact on ticket prices and airline operations
The cost of a barrel of jet fuel has surged from £63 to as high as £148 amid the Middle East conflict. Fuel accounts for about a quarter or more of airline operating expenses, significantly affecting profits. According to BBC reports, the lowest-priced economy tickets are now 24% more expensive on average than last year. Airlines have requested measures such as a cut or suspension of Air Passenger Duty to offset costs for consumers.
Several airlines have already reduced services. Lufthansa, for instance, has cancelled 20,000 European short-haul flights, saving around 40,000 metric tons of jet fuel. The German airline is offering customers refunds or alternative flights with other carriers.
