The boss of easyJet has issued a holiday warning to Brits as aviation fuel prices spike due to the ongoing war in Iran.

CEO Kenton Jarvis has urged holidaymakers to book flights “as early as possible” as ticket prices will rise towards the end of the summer if fuel costs remain at this current level. The budget airline said it buys its fuel advance so it is “well-hedged” for the coming months, but if prices remain elevated, by the end of the summer this could lead to more expensive air fares for passengers. As such, holidaymakers are advised to book early to avoid a potential hike in ticket prices later this year.

Mr Jarvis said airlines like easyJet worked on “thin” margins of £6 to £7 per seat, so there was a need to offset increased costs with efficiencies, but that would be difficult.

Jet fuel accounts for about a third of airline costs and Air France-KLM and SAS have already said they will have to hike ticket prices, while Finnair has warned that jet fuel supplies may run out due to the effective closure of the Strait of Hormuz.

In January, easyJet it ​had hedged 84% of its fuel ​needs for the first ⁠half of 2026, 62% for the second and 43% for the first half of 2027, at an average cost of $715, $688 and $671 per metric ton, respectively.

For now, ​Mr Jarvis said he saw no issues with supply and easyJet was dealing ​with fuel price ⁠volatility through “business as usual management through cost.”

But while the airline has hedged the majority of its fuel needs for the coming months, by the end of the summer those hedges start to come off and, depending on fuel prices then, ticket prices could jump.

Speaking at Newcastle Airport this week as easyJet opened a new base, Mr Jarvis said: “One thing we have seen is fuel very volatile over the last few weeks since this terrible war started, and we’re seeing it completely elevated at the moment.

“As an airline, easyJet is very well-hedged, so we buy our fuel in advance, which means we’ve got fuel at attractive prices for the coming months.

“But over time (…) yes, I expect if fuel remains at this level, the prices will become elevated. Fuel prices will have to go up in which case, I just recommend booking as early as possible.”

The Iran war has already impacted holiday bookings, with easyJet noting an increased demand for destinations away from the conflict.

According to Mr Jarvis, the eastern Mediterranean is becoming less popular while demand is increasing for destinations in western Mediterranean.

Spain, the Canaries, Portugal, Malta and Greece are among the areas proving popular among holidaymakers, while there has been a “softening demand” for both Middle Eastern destinations Turkey and Cyprus.

EasyJet said it hadn’t yet made any capacity changes but it could reduce the frequency of flights to destinations served by multiple daily flights.

In general, demand for holidays is currently holding up despite fears over the cost of living in the UK, but with the situation still “very unpredictable”, easyJet it’s still unclear how the ongoing war in Iran could affect demand longer term.

He added: “If the conflict is, from a booking’s perspective, like Ukraine or the Hamas attacks, what happened historically is that bookings start to rise again after about six weeks. So, right now, it’s in line with what we’re expecting.”