Top travel firms have moved quickly to calm concerns about potential 'war' surcharges on summer holidays, with Brittany Ferries, easyJet, and Jet2 vowing not to apply additional costs. The Man Who Pays His Way, Simon Calder, reports on the latest developments.
Fuel Fears Amid Geopolitical Tensions
The first casualty of war is truth, but travel is never far behind. This week, European officials have been discussing travel in soundbites of questionable veracity. Both the head of the International Energy Agency and the EU energy commissioner have made pronouncements about imminent aviation fuel shortages that are not supported by available data. Careless talk costs holidays. One leading independent travel agent reports that every other question is about fuel, a concern that was virtually nonexistent two months ago before Iran retaliated against attacks by the US and Israel, closing a large part of the Middle East to civil aviation.
Current Situation and Consumer Protection
Eight weeks on, the big airports of the Gulf remain on the Foreign Office no-go list, with Emirates, Etihad, and Qatar Airways still struggling to repair their schedules. However, bargains abound, making this a real buyers' summer. Booking now offers strong consumer protection: if the flight fails to go ahead for any reason, the airline must find an acceptable alternative. But some travelers, looking at soaring aviation fuel prices, worry about additional charges. While some airlines have introduced surcharges for new bookings, from £2 to £260, these do not apply to existing ticket holders.
Hedging Protects Holidaymakers
Most airlines and holiday companies hedge the majority of their forecast energy requirements, entering into financial deals to lock in fixed prices for fuel. This means that summer holiday flights will be powered by fuel bought at pre-crisis prices. Under the Package Travel Regulations, tour operators can request more money if fuel costs rise, but only if they show their calculations. If the surcharge exceeds 8%, customers have the right to cancel for a full refund. Unsurprisingly, surcharges often hit exactly 8%, adding £80 to a £1,000 holiday.
Major Operators Rule Out Surcharges
For those who have booked package holidays, there is good news. Two of the UK's biggest tour operators have vowed not to surcharge summer holidaymakers. Jet2, Britain's largest holiday company, led the way. Chief executive Steve Heapy said on Friday: '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. Customers booking with Jet2 know that they are locking in their price without additional cost surprises later.'
easyJet Holidays CEO Garry Wilson followed on Saturday, stating: 'We know that holidaymakers may have questions about what recent global events might mean for their travel plans this summer, so we are giving our customers absolute peace of mind that no surcharges will be added to their flights or package holidays.' He added that customers can be confident their holidays will go ahead as planned. Simon Calder predicts that Tui, the third giant company, will follow suit. However, IAG, which owns British Airways, Aer Lingus, and Iberia, is discussing 'pricing adjustments to reflect these higher fuel costs'. 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.'
Market Forces Limit Price Hikes
Travelers need not worry: BA will not come after customers for more cash, and airlines can only charge what the market will bear. Judging from some prices on offer, that is not much. Simon Calder, also known as The Man Who Pays His Way, has been writing about travel for The Independent since 1994, exploring key travel issues and what they mean for consumers.
