P&O Ferries is imposing surcharges of up to £50 on holidaymakers as the Iran war threatens to disrupt summer travel. The ferry operator, owned by Dubai-based DP World, announced one-way surcharges of £27 per vehicle on its Hull to Rotterdam route, meaning passengers face an additional £54 for a round trip.
Additional Surcharges on Key Routes
Vehicle surcharges of £7.50 will apply to crossings between Dover and Calais and between Northern Ireland and Scotland. Foot passengers will pay £2 more on these routes and £4 extra on the Hull-Rotterdam journey. The surcharges, effective from March 9, apply to all future bookings, according to The Times. P&O already charges a green energy levy of around £4 per vehicle.
The company stated the surcharges are intended to offset rising fuel costs caused by the Iran war and the blockade of the Strait of Hormuz.
Criticism from Rivals
The move has drawn criticism from competitors. Christophe Mathieu, chief executive of Brittany Ferries, accused the travel industry of profiteering. He told LBC News in April that while fuel costs are significant, companies typically hedge against them. “What I find bizarre is that at the moment there is no shortage and yet they’re already cancelling some flights,” he said.
P&O previously faced backlash in 2022 after sacking 800 workers, allegedly using a legal loophole, and threatened to pull £1bn of investment following ministerial criticism.
Iran War Causes Travel Chaos
The conflict has led to the cancellation of 13,000 flights in May, resulting in a loss of up to two million seats. Airports in Istanbul, Turkey, and Munich, Germany, have seen significant drops in air traffic. German airline Lufthansa has cut 20,000 short-haul flights, while Irish carrier Aer Lingus has removed hundreds of trips from its summer schedule.
IAG, the FTSE 100 owner of British Airways, has imposed fare surcharges to recover £1.7bn in costs from the Iran war. However, Jet2, a London-listed airline and holiday package provider, scrapped such surcharges to give customers assurance. Chief Executive Steve Heapy said last month: “Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs.”
