Jet2 boss warns flight prices will ‘continue to rise’

Jet2holidays chief executive Steve Heapy has warned flight prices will continue to rise for the foreseeable future due to government taxation, which he labelled “the biggest risk facing our industry today”.

Speaking at the company’s eighth annual conference in Faro, Portugal, Heapy slammed the government’s approach to making the aviation more sustainable through increased taxation.

He estimated the cost of carbon permits, used by airlines to offset emissions, has increased from £5 to £90, which is being funnelled back into the ticket price and pushing the cost of flying up.

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He said he feels politicians have set themselves unachievable sustainability targets and will punish the aviation industry as they get “more desperate”.

“As politicians get closer to their sustainability target dates and see they’re nowhere near reaching them, they will get more desperate and they will use the one tool they have in their arsenal to reduce greenhouse gases: taxation,” he said.

“It will put holiday prices up and tax people out of the ability to fly, meaning flying will become something for the rich and privileged only.

“This is my big worry and keeps me up at night as, for the foreseeable future, the cost of flying will continue to increase.”

Heapy went on to say Jet2holiday will develop a series of videos and newsletters for its hotel partners sharing advice on how they can become more sustainable and be accredited by the World Tourism Council.

He encouraged agents to see the global push towards sustainability as an opportunity for tapping into a growing market.

“Terms like sustainable holidays, green holidays and holidays without guilt are going up exponentially by hundreds of percent every year,” he added.

“People want sustainable holidays and this should be seen as an opportunity. We will find the sustainable hotels and work with them to get accredited and then we will bring that product to you so when someone comes into your shop saying they want a sustainable holiday, you will have the ability to click on a filter and show them all the certified hotels we offer.

“There is a market out there and it is growing – don’t let it just be online, we will work with you.”