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

Virgin Group founder Sir Richard Branson has accused leaders starting wars as the reason for soaring flight prices, a remark seemingly directed at the US-Israel conflict with Iran. Middle East tensions have disrupted oil production and transport, causing a surge in car and jet fuel prices, which are derived from oil. In May, Virgin Atlantic introduced a fuel surcharge to ticket prices due to the rising costs.

US President Donald Trump has defended the conflict, maintaining that it is necessary for long-term peace and security. However, Branson insists there was no need for the war and calls it completely unnecessary. The nuclear agreement between Iran and the rest of the world, negotiated by President Obama and several European powers, was working effectively, and there was no need to terminate it.

The Iran conflict led to the tearing up of this agreement, resulting in a significant increase in oil prices worldwide and contributing to inflation.

The European benchmark jet fuel price had been around $800 (£590) per tonne, but it skyrocketed to over $1,800 after the outbreak of the Iran war in April before falling back to approximately $1,450. Virgin Atlantic's CEO, Corneel Koster, stated that such high fuel prices necessitate fuel surcharges, and he expressed pessimism about the situation in the Middle East. The surcharge added £50 to an economy class fare, £180 to premium and £360 to business class.

Several rivals of Virgin also raised fares and cut flights following the conflict's onset. A Teneo analysis revealed that the Iran war had caused a 25% increase in air fares. Earlier this week, Ryanair announced it would reduce its winter schedule due to higher fuel prices and warned that European short-haul fares would increase significantly if jet fuel prices continue to rise until next summer.

Despite the higher costs, Koster said Virgin did not plan to significantly alter its winter schedule, noting that capacity had been reduced slightly earlier and that there might be trimming or capacity discipline if demand is low on certain routes during winter. Virgin expects to fly 95% of its regular schedule.

Branson was interviewed by the BBC while Virgin Atlantic secured a contract to fly Team GB and ParalympicsGB to Los Angeles for the Summer Olympics in 2028, taking over from British Airways, which had been handling the contract since the 2008 games in Beijing.