Whenever there's a surge in oil prices, the airlines end up passing that to the consumers immediately. It doesn't take a long time. Jet fuel prices account for about a third of airlines' operating costs, so they cannot afford to wait to upcharge their customers.
The war is constraining oil exports and prompting major producers like Kuwait, Saudi Arabia and Iraq to scale back output as shipments face growing obstacles. Iran has attacked commercial ships across the Persian Gulf and targeted oil infrastructure in Gulf Arab nations following U.S. and Israeli strikes. The attacks have effectively halted traffic through the Strait of Hormuz, a narrow passage that carries about one-fifth of the world's oil supply.
Since Iran virtually shut down the vital Strait of Hormuz this week - through which tanker ships carry 20% of the world's supply - crude oil prices have skyrocketed, and jet fuel prices in some markets have reportedly doubled. U.S. jet fuel prices jumped by 58% during the first week of the war, and United Airlines CEO Scott Kirby said the impact on airfares will "probably start quick."
Now, just Delta and Norse Atlantic will operate from there and the reduced number of carriers is expected to have a huge knock-on effect for holidaymakers in south London, Sussex and Kent. Fares at Gatwick are likely to be pushed up, especially around peak periods, last-minute bookings and premium leisure dates. Heathrow, by contrast, will stay highly competitive with BA, American Airlines, Virgin Atlantic and Delta running New York shuttles.