Brittany Ferries said it will not raise prices in the coming months or be disrupted by fuel shortages despite the Middle East conflict. The company secured the vast majority of its fuel at a fixed price through hedging, and its suppliers have guaranteed the free-flow of all maritime fuels, according to Brittany Ferries.
CEO Christophe Mathieu accused other transport providers of profiteering, saying some operators did not hedge fuel and are looking to others to cover their losses like bad gamblers. Rival ferry operator DFDS said it will attempt to absorb higher costs but ultimately will have to share the pain until prices drop again, according to Daily Mirror - Main. Some airlines such as Virgin Atlantic have imposed fuel surcharges on passengers, while KLM has cancelled flights amid concerns about fuel shortages, according to multiple reports.
Brittany Ferries recorded a 37% increase in reservations over the past fortnight for July and August sailings, which it said indicates families are abandoning the volatility of travel by air. Travel company On the Beach said its prices for package holidays in the next three months are an average of 10% cheaper compared with the same period last year, with an analysis of 11,500 holidays finding they were typically £110 cheaper. A senior travel industry source said there has been downward pressure on prices of holidays in destinations closer to the Middle East war, such as Cyprus, Turkey and Egypt, but prices are expected to rise closer to the summer peak period. Higher fuel prices are set to have driven an increase in Consumer Prices Index inflation to 3.3% in March, according to a consensus of experts.