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

Virgin Group founder Sir Richard Branson has criticized flight price increases as a result of political leaders initiating wars, namely the US-Israel conflict with Iran. Middle Eastern tensions have disrupted the production and transportation of massive amounts of oil, leading to a spike in fuel prices for cars and airplanes. In May, Virgin Atlantic implemented a fuel surcharge for ticket prices.

US President Donald Trump has defended the conflict, claiming it is essential for long-term peace and security. However, Branson stated that the Iran war was "completely unnecessary" and that a previous nuclear agreement between Iran and the international community, negotiated by President Obama and European nations, was working correctly.

The conflict has caused a surge in the European jet fuel price, which jumped from $800 (£590) per tonne to over $1,800 in April and has since decreased to around $1,450. Virgin Atlantic's CEO, Corneel Koster, acknowledged that such a high fuel price required surcharges, but expressed pessimism about the Middle East situation. In April, Teneo analysis revealed that 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 of significant fare hikes if fuel prices continue to rise. Despite the increased costs, Koster said Virgin did not plan to significantly alter its winter schedule, expecting to operate around 95% of its regular flights. Branson spoke to the BBC about Virgin Atlantic securing a contract to transport Team GB and ParalympicsGB to Los Angeles for the 2028 Summer Olympics, taking the role from British Airways, which had been providing the service since the 2008 Beijing games.