Branson Blames 'Foolish Leaders' for Flight Price Hikes, Offers Free Ride to Olympics as Consolation
Richard Branson blames 'foolish leaders' for war-driven fuel price hikes, while Virgin Atlantic adds surcharges and celebrates winning an Olympic contract.
Virgin Group founder Sir Richard Branson has pointed a finger at "foolish leaders" for rising flight prices, in what can only be described as a thinly veiled jab at the US-Israel conflict with Iran. Because nothing says 'diplomatic' like blaming world leaders for your fuel surcharges.
Middle East tensions have strangled the production and transport of millions of barrels of oil, sending the price of car and jet fuels - both made from the sticky stuff - through the roof. In May, Virgin Atlantic responded by slapping a fuel surcharge on ticket prices, because who doesn't love a surprise fee?
US President Donald Trump has repeatedly defended the conflict as a necessary step for long-term peace and security. But Sir Richard begs to differ, stating there was "no need" for the war. "The Iran conflict was completely unnecessary. There was a nuclear agreement between Iran and the rest of the world that had been negotiated by President Obama and a lot of European people," he said. "It was working, so there was no need to rip it up... And this war has just resulted in much higher oil prices all over the world. And inflation has been one of the consequences."
The BBC has contacted the White House for comment - presumably to ask if they've considered a strongly worded letter instead of, you know, a war.
Meanwhile, the European benchmark jet fuel price, which had been lounging around $800 (£590) per tonne, spiked to a peak of over $1,800 in April following the war's outbreak. It has since eased to around $1,450, which is still enough to make accountants weep.
Virgin Atlantic's chief executive, Corneel Koster, told the BBC that fuel surcharges were "absolutely required" at "this level of fuel price," adding that it's "hard to be optimistic at this moment about the situation in the Middle East." The surcharge added £50 to economy fares, £180 to premium, and a whopping £360 to business class - because misery loves company, and business class passengers can afford it.
Air fares have soared by nearly 25% as Iran war forces flights to re-route, and airlines are cutting flights and hiking fares as fuel prices surge. In April, consultancy firm Teneo found the Iran war had led to a 25% increase in air fares. Ryanair announced it would reduce its winter schedule due to higher fuel prices and warned that European short-haul fares would "increase materially" if jet fuel prices keep climbing until next summer.
Yet, despite the financial turbulence, Koster said Virgin had no plans to drastically alter its winter schedule. Winter capacity had already been slightly reduced a few months ago, and if demand on certain routes plummets "in the depths of winter," there might be some "capacity discipline," but not "big percentages." The airline expects to fly 95% of its regular schedule - so at least there's that.
In brighter news, Sir Richard was speaking to the BBC as Virgin Atlantic announced it had snagged a contract to fly Team GB and ParalympicsGB to Los Angeles for the Summer Olympics in 2028. The airline snatched the contract from rival British Airways, which had held it since the 2008 games in Beijing. So, if you're an athlete, you might get a free ride - just don't expect the fuel surcharge to be waived.
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