Business
Virgin Atlantic boss warns high jet fuel costs are 'here to stay'
Prolonged war in the Middle East could dampen global travel demand says Corneel Koster
Image for illustrative purposes only.
Virgin Atlantic Chief Executive Corneel Koster has warned that elevated jet fuel prices are "here to stay", and said that a prolonged war in the Middle East could dampen global travel demand, the Financial Times reported on Monday.
In an interview with the FT, Koster said the British airline will struggle to return to profitability this year, even after adding fuel surcharges to fares in an effort to counter rising costs.
He added that despite what he described as the "positive news" of a ceasefire between the US and Iran, "all-in jet fuel prices" remain more than double their pre-war levels.
In a separate interview with Bloomberg News, Koster said Virgin Atlantic has about six weeks of secure jet fuel supplies before the outlook gets murkier.
He added that the airline is in discussions with governments and its base at London's Heathrow Airport to help ensure adequate fuel availability.