Iran: Brittany Ferries pledges to freeze prices amid higher oil costs taking aim at 'profiteering' DFDS
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The Brittany Ferries boss made the decision amid skyrocketing prices - accusing companies showing the “unacceptable face of capitalism”
One of Portsmouth’s most prominent ferry operators has pledged it will not raise prices despite the conflict in the Middle East.
Brittany Ferries CEO Christophe Mathieu accused other transport providers of “profiteering” after oil prices skyrocketed amid the Iran war. Tehran has held a stranglehold over the Strait of Hormuz was most of March and April, where roughly 20 per cent of the world’s oil flows through.
Cargo ships have been targeted and mines have been laid. The UK and France will lead a ‘peaceful defensive’ mission to clear underwater explosives in the Strait of Hormuz once the war ends. A fragile two-week ceasefire between the US-Israeli coalition and Iran is due to end soon, with fresh talks expected to take place in Islamabad, Pakistan.
While this limbo continues, various prices have been rising. Brittany Ferries said it secured the “vast majority” of its fuel at a fixed price – known as hedging – which limits the impact of the rise in the cost of oil. Some other transport operators did not do this, and are “looking to others to cover their losses” like “bad gamblers”, it said.
Brittany Ferries also said its suppliers have “guaranteed the free-flow of all maritime fuels”. It made the comments as rival ferry operator DFDS told the Jersey Evening Post it will attempt to absorb higher costs but “ultimately, we are going to have to share that pain until prices drop again”.
Some airlines such as Virgin Atlantic have imposed fuel surcharges on passengers in response to higher oil prices, and others such as KLM have cancelled flights amid concerns about a shortage of fuel.
Brittany Ferries connects Portsmouth with France and northern Spain, as well as vital connections to the Channel Islands. Mr Mathieu said: “If you have booked with us, or are considering doing so, we will get you to a beautiful and safe holiday destination this year. Period.
“Secondly, we will play no part in profiteering or seeking to recover losses from a gamble gone wrong, as some appear to be doing. The cost of our holidays rose by inflation earlier this year, and by inflation alone.
“There will be no further rises in the weeks or months ahead. Conflict or other global uncertainty should never be used as the basis to hike prices. It is absolutely the unacceptable face of capitalism.”
Brittany Ferries said it had recorded a 37 per cent increase in reservations over the past fortnight for sailings in July and August, which it claimed indicated many families were “abandoning the volatility of travel by air”.
Meanwhile, travel company On the Beach said its prices for package holidays in the next three months were an average of 10% cheaper compared with the same period last year. Its analysis of 11,500 holidays found they were typically £110 cheaper than a year ago.
Caspar Nelson, holiday expert at On the Beach, said: “This is a rare, sunny spot for consumers right now and our advice is quite simple: now is the right time to book and lock in your price. Take advantage of these deals while they are still working in your favour.”
A senior travel industry source said there had been downward pressure on the price of holidays in destinations closer to the war in the Middle East, such as Cyprus, Turkey and Egypt. But prices are expected to rise closer to the summer peak period, in line with demand. Higher fuel prices are set to have driven an increase in Consumer Prices Index inflation to 3.3 per cent in March, according to a consensus of experts.