Research suggests a growing number of travellers are leaving it later before booking flights, forcing some airlines to offer bigger discounts
Foreign holiday jitters are forcing airlines to cut fares, research suggests.
Talk of cancellations because of possible jet fuel shortages due to Iran war has seen some people delay or think twice before booking flights. The debacle over new border checks for Brits travelling to the EU, with long queues at some airports, hasn’t helped either.
It has led to some carriers cutting ticket prices to get passengers to commit. That is despite a surge in jet fuel prices that many airlines have already warned will hammer their profits.
British Airways owner IAG said last week it was hoping to offset some of the cost by increases fares. However, the reticence by some passengers to book may make it harder for some firms to do the same.
Analysis by the Financial Times found that, between April 9 – the day before European airports warned the region may run short of jet fuel – and May 6, airfares for a week-long trip in July declined for 27 of the top 50 European flight routes to the Mediterranean. Prices dropped by 10% or more for 15 routes, including from Heathrow to Nice, Manchester to Palma and Gatwick to Barcelona.
It came as Heathrow airport reported passenger numbers fell by 5.3% last month because of the war in the Middle East. The west London airport said 6.7 million passengers passed through its four terminals in April. That is compared with 7.1 million during the same month last year. The reduction reflects “the ongoing impact of the Middle East conflict on some markets and short-term adjustments to travel plans”, the airport said.
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Heathrow chief executive Thomas Woldbye said: “We know passengers want certainty when planning their hard-earned summer holidays, so we are supporting government and airlines as they work through their plans to get passengers on their journeys.
“While we have seen some short term disruption linked to the Middle East conflict, demand for travel remains strong with current fuel supplies stable. April was still our busiest month so far this year, underlining the strength of a global hub airport that can adapt quickly in times of uncertainty.”
The ongoing wariness about holidaying abroad has further fuelled talk of another staycation boom for the UK’s tourism industry.
Holiday park chain Haven told the Mirror it saw double-digit growth over the Easter holidays, with bookings up 10% year-on-year. And it reported significant growth in booking for the main summer holidays over the past four weeks, with sales up 30% compared to last year.
Simon Palethorpe, Haven chief executive, said: “We’re seeing more families than ever choosing to holiday closer to home – better value, less hassle and a brilliant experience. Our team are preparing for what’s set to be a record-breaking season by focusing on how we can give all our guests a great time,”
