LONDON, April 24 (Reuters) - British Airways-owner IAG said on Friday it will make some price adjustments to tickets to reflect higher jet fuel costs, but was not seeing interruptions to jet fuel
British Airways-owner IAG to raise ticket prices over fuel crisis
Impact of Fuel Crisis on European Airlines
IAG's Response to Rising Jet Fuel Costs
LONDON, April 24 (Reuters) - British Airways-owner IAG said on Friday it will raise ticket prices to reflect higher jet fuel costs, but was not seeing interruptions to jet fuel supply.
Industry-Wide Effects and Reactions
Profit Warnings from Competitors
Airlines like Britain's easyJet and German tour group TUI have issued profit warnings recently as a result of uncertainty tied to the U.S.-Israeli war with Iran and the subsequent blockage of the Strait of Hormuz.
Fuel Surcharges Introduced
Air France-KLM said soon after the war began in March that it would add a jet fuel surcharge to some of its tickets.
European vs. American Airlines: Hedging and Vulnerability
Hedging Strategies
European airlines have been more shielded than American carriers from rising jet fuel costs thanks to extensive hedging, but the effect will start to diminish in the coming months, making their earnings more vulnerable to fuel-price volatility.
IAG's Statement on Broader Fallout
IAG said in a statement that despite its fuel hedges, it was "not immune" to the broader fallout.
Call for Government Flexibility
"Flexibility from government, including on (airport) slot alleviation, would ensure airlines can continue to operate as efficiently as possible and manage sustained cost challenges while keeping people and trade moving," an IAG spokesperson said in a statement.
(Reporting by Joanna Plucinska; Editing by Susan Fenton, Kirsten Donovan)
