The boss of airline easyJet has warned North East holidaymakers to book early as aviation fuel costs spike because of the ongoing war in Iran.
Kenton Jarvis said the budget flyer was “well-hedged” as it had fuel supplies secured in advance but the pricing currently was “volatile” since this “terrible war started”.
He was speaking at Newcastle Airport, where easyJet announced it was opening a new base with three aircraft, operating 86 flights per week on 22 routes from the hub.
The plan should support 1,200 UK jobs including 140 posts for pilots and cabin crew.
Mr Jarvis, who arrived in Newcastle on a specially-arranged flight from Luton, said UK growth from regional airports was up by more than 30% in the past three years.
Asked if this was the right time to expand, given the ongoing crisis in the Gulf, he told the Press Association: “We take very much long term views when we do this.
“This is something we’re doing for the medium term.”
On increased fuel prices, he said: “One thing we have seen is fuel very volatile over the last few weeks since this terrible war started, and we’re seeing it completely elevated at the moment.
“As an airline, easyJet is very well-hedged, so we buy our fuel in advance, which means we’ve got fuel at attractive prices for the coming months.
“But over time (…) yes, I expect if fuel remains at this level, the prices will become elevated.
“Fuel prices will have to go up in which case, I just recommend booking as early as possible.”
Mr Jarvis said airlines like easyJet worked on “thin” margins of £6 to £7 per seat, so there was a need to offset increased costs with efficiencies, but that would be difficult.
The operator has noted increased demand for destinations away from the conflict, including the Canaries, Spain, Portugal, Malta and Greece, with “softening demand” for Turkey and Cyprus.
But demand for holidays in general was holding up, he said, despite fears over the cost of living in the UK.
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Longer term, the war in Iran could affect demand, but he added: “If the conflict is, from a booking’s perspective, like Ukraine or the Hamas attacks, what happened historically is that bookings start to rise again after about six weeks.
“So, right now, it’s in line with what we’re expecting.”
Asked for his message to the Prime Minister about the ongoing war, he said: “What I would say, as CEO, is to make sure that they think of aviation, and they think of the importance of the economy of growth in aviation.”
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