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BA warns fare hikes if fuel costs stay high

Financial Times Companies •
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British Airways CEO Sean Doyle warned at the IATA meeting in Rio de Janeiro that ticket prices must rise if jet fuel stays high. Fuel costs have doubled since the Iran war began, with the Strait of Hormuz closed, cutting 40% of Europe’s supply. Airlines worldwide have already added surcharges; Virgin Atlantic’s fees reach £360 on premium cabins.

Doyle said BA will lift fares more on long‑haul routes, where business travelers absorb price hikes better than leisure flyers on short hops. He recalled 1995 Barcelona tickets at £60, noting today’s fares barely exceed that off‑peak level. The carrier is redeploying aircraft withdrawn from Gulf markets to routes like Bengaluru while planning a phased return to Dubai in October.

Doyle urged the UK to cut air passenger duty, saying the tax makes Britain less competitive than France or Spain and threatens the aim of drawing 50 million tourists a year. Without cheaper travel the tourism lift will stall, and BA will continue passing fuel costs to passengers as volatility persists.

The airline already signaled a business‑class fare hike, targeting customers less sensitive to price than leisure flyers. BA expects to resume Dubai services in October, marking the start of its winter schedule that runs to April. The move aims to recapture premium demand while offsetting the lingering fuel price shock.