Oil prices tumble as two-week ‘conditional’ US-Iran war ceasefire confirmed

An Abta spokesperson said: “On the face of it, the ceasefire seems to be the most positive news in some time but nonetheless the geopolitical situation remains extremely uncertain.

 

"As ever, we will support Abta members through this uncertainty, keeping them fully abreast of developments relating to travel and their operations.”

 

Advantage Travel Partnership chief executive Julia Lo Bue-Said said: "The two-week ceasefire announced between the United States and Iran is a moment of genuine, if cautious, relief for the global travel industry.

 

“Since hostilities began, the travel sector has absorbed some of its most severe shocks since the Covid-19 pandemic.

 

“Millions of travellers were stranded worldwide due to airspace closures that grounded thousands of flights and the subsequent surges in oil and gas prices have caused wide disruptions across the aviation sector.

 

“As is usual across our industry, we have once again shown remarkable resilience. But what it needs most right now is not a ceasefire, it needs lasting peace."

 

Iata director general Willie Walsh suggested it will take months, rather than weeks, for jet fuel supplies and prices to normalise even if the Strait of Hormuz remains open.

 

He said: “It will still take a period of months to get back to where supply needs to be given the disruption to the refining capacity in the Middle East. I don’t think it’s going to happen in weeks.”

 

Air New Zealand revealed a “small number” of schedule changes for travel across May and June, blaming “the ongoing impact of high jet fuel costs”.

 

The airline said: “These consolidations affect around 4% of flights but only 1% of total passengers due to travel across this period.  

 

“We have worked hard to keep disruption to a minimum, with the vast majority of impacted customers still travelling on the same day.  

 

“Like airlines globally, we’re experiencing jet fuel prices that are more than double what they would usually be.  

 

“This is driving higher costs across the industry, and we’ve made further increases to some airfares to help manage this. 

 

“We remain focused on keeping New Zealanders connected and maintaining a reliable, fuel-efficient schedule. Customers whose updated flight doesn’t suit their plans can choose a refund or credit. If you don’t hear from us, your flight is operating as scheduled.”