Holidaymakers are encountering increased flight costs and pricier package deals due to the looming shortage of jet fuel, even if they have already made reservations. This situation has been triggered by the Iran War and the consequent closure of the Strait of Hormuz, disrupting oil flow from the Middle East and depleting jet fuel supplies in European countries.
European nations typically stockpile several months’ worth of jet fuel, but with the ongoing closure of the Strait of Hormuz, the risk of supply shortages is growing. Approximately 40% of Europe’s jet fuel imports pass through the strait, which has been inaccessible since the conflict began.
The jet fuel scarcity is expected to impact British holidaymakers through increased flight prices, additional fees, flight cancellations, and surcharges on package breaks. Jet fuel constitutes a significant portion of airlines’ expenses, with prices having doubled since the conflict erupted, potentially leading to shortages in the near future.
Some airlines have already raised ticket prices. Virgin Atlantic, for instance, has added a £50 fuel surcharge to economy-class tickets, while Air France and KLM are increasing fares by €50, with additional surcharges for flights to certain destinations.
For travelers who have already booked flights, airlines are not retroactively adjusting fares. However, airlines are exploring other methods to generate additional revenue, such as hiking baggage fees. American Airlines and Southwest Airlines have announced increases in checked baggage fees on domestic and short-haul international flights.
As jet fuel supplies dwindle, major airlines have started canceling flights due to rising costs and reduced demand. SAS, United Airlines, and KLM have all announced flight cancellations, with some carriers suspending routes to conflict-affected regions. Passenger rights and compensation options vary depending on the circumstances of flight cancellations.
Furthermore, a lesser-known clause in package holiday terms allows operators to increase prices by up to 8% post-booking under specific conditions, including fuel price hikes. With fuel costs on the rise amid the Middle East conflict, holiday companies could invoke this clause to raise package holiday prices for British travelers who have already made bookings.
The ongoing fuel crisis poses challenges for both airlines and holidaymakers, impacting travel costs and availability in the foreseeable future.