How the Strait of Hormuz Is Influencing Private Jet Charter Pricing

Since Iran effectively closed the Strait of Hormuz in early March, aviation fuel prices across Europe have roughly doubled. UK aviation fuel prices that were sitting at around $2 a gallon in February are now above $4.25, more than double, in the space of six weeks.

Fuel typically accounts for around a quarter of a charter's total costs. When that doubles, operators have little choice but to pass it on - and as a result we are seeing charter prices up approximately 20-30%.

For clients travelling longer distances, there is an also an added layer to this. Flights that used to route through Middle Eastern airspace are now being sent the long way around. That means more hours in the air and more fuel burned - both of which feed directly into the final price.

We have been working hard to make sure our clients feel as little of this as possible. The most effective thing we are doing is making sure every client is on the right aircraft for their journey. That means taking the time to match each trip to an aircraft that is already positioned correctly. Repositioning costs are one of the biggest hidden drivers of charter pricing, and right now, in a market where fuel is this expensive, getting that right makes a real difference to what ends up on your quote.

It is also worth keeping the bigger picture in mind. Commercial aviation is under significant pressure right now - carriers including Lufthansa, Air France-KLM and SAS have been cutting flights and raising fares. Private aviation, by contrast, continues to operate reliably. The cost of flying private has gone up, but so has the case for it.

If you are planning to travel this summer and want to understand what charter pricing looks like right now, don't hesitate to get in touch.