Virgin Group founder Sir Richard Branson has blamed the war involving the United States, Israel, and Iran for pushing up oil prices and forcing airlines including Virgin Atlantic to raise fares. He said the conflict was unnecessary and argued that its impact on energy prices had contributed to higher inflation.
Virgin Atlantic introduced fuel surcharges in May after jet fuel prices rose sharply. The airline added £50 to economy fares, £180 to premium tickets, and £360 to business-class fares.
Higher Fuel Costs Push Up Ticket Prices
European benchmark jet fuel prices had been around $800 per tonne before climbing above $1,800 in April following the escalation of the Iran conflict. Prices have since eased to about $1,450 per tonne but remain well above earlier levels.
Virgin Atlantic chief executive Corneel Koster said surcharges were necessary at current fuel prices. The airline does not currently plan major reductions to its winter schedule and expects to operate about 95% of its normal programme.
Other European airlines are also adjusting their operations. Ryanair recently reduced its passenger growth target and winter capacity plans as higher fuel costs increased pressure on the industry.
Branson linked the current situation to the collapse of the previous nuclear agreement with Iran, arguing that the subsequent conflict had driven up oil prices globally. U.S. President Donald Trump has defended the conflict as necessary for longer-term peace and security.
Virgin Atlantic Maintains Most of Its Winter Schedule
Koster said Virgin Atlantic had already made limited winter capacity reductions several months ago and could make further adjustments on individual routes if demand weakens. The airline does not expect cuts on the scale announced by some competitors.
Virgin had already suspended its seasonal Dubai and Seattle services for winter 2026 as part of changes announced in May, citing evolving customer demand. Seattle service is scheduled to resume in March 2027.
The comments came as Virgin Atlantic announced that it will become the official airline partner of Team GB and ParalympicsGB for the Los Angeles 2028 Olympic and Paralympic Games, replacing British Airways. Virgin plans to provide travel support for athletes and teams using its three daily flights between London and Los Angeles.
Virgin Atlantic Holidays will also serve as an official holiday partner for the teams and offer travel packages for supporters attending the Games. The partnership runs alongside the airline’s efforts to manage higher operating costs without substantially reducing its network.
Featured image credits: Wikimedia Commons
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