Flight price rises due to 'foolish leaders' starting wars, Virgin's Branson says

Virgin Group founder Sir Richard Branson has blamed flight price rises on foolish leaders starting wars, specifically referencing the US-Israel conflict with Iran. Middle East tensions have disrupted oil production and transportation, causing an increase in fuel prices for cars and jets. In May, Virgin Atlantic introduced a fuel surcharge to offset higher ticket prices.

US President Donald Trump has defended the conflict as necessary for long-term peace and security, but Branson stated there was no need for the war. The Iran conflict was unnecessary due to an existing nuclear agreement between Iran and the rest of the world, negotiated by President Obama and European countries. The agreement was working well, so there was no reason to dismantle it. The war has resulted in higher oil prices globally, contributing to overall inflation.

Jet fuel prices spiked from around $800 (£590) a tonne to over $1,800, before dropping to approximately $1,450. Virgin Atlantic's chief executive, Corneel Koster, said such a high fuel price required fuel surcharges, and it was difficult to remain optimistic about the Middle East situation. The surcharge added £50 to economy class fares, £180 to premium, and £360 to business class.

Several rivals cut flights and increased fares following the conflict. Teneo analysis found the Iran war led to a 25% increase in air fares. Ryanair announced it would reduce its winter schedule due to higher fuel prices and warned European short-haul fares would increase materially until the following summer. Despite higher costs, Koster said Virgin did not plan significant schedule changes, as capacity had already been slightly reduced.

The airline expects to operate 95% of its regular schedule. Branson secured a contract for Virgin Atlantic to fly Team GB and ParalympicsGB to Los Angeles for the 2028 Summer Olympics, taking the contract from rival British Airways.