Jet Fuel Shortage Triggers Global Airlines To Cancel Flights, Hike Ticket Prices Amid Hormuz Blockade

The threat of widespread flight cancellations during the upcoming summer holidays looms in Europe as the Airports Council International Europe recently warned that jet fuel shortages and cancellations are inevitable unless a stable supply resumes within three weeks.

The closure of the Strait of Hormuz drove up oil prices considerably in a short span as tankers remained stranded in queues in the region facing tremendous conflict. While US President Donald announced late Tuesday the US would extend the ceasefire with Iran, he mentioned that the Hormuz blockage by the US would continue.

'There's a growing chance that leisure flights could start being cancelled from May if carriers are unable to source enough fuel from other producing nations,' said Susannah Streeter, the chief investment strategist of Wealth Club.

Reports indicated that multiple airports in Italy have already restricted operations and are rationing due to a fuel shortage. According to the Independent, dozens of airlines worldwide are also planning to cancel flights or bump ticket prices in the short term.

Overview of Airlines Cancelling Flights, Hiking Travel Prices

In preparation for jet fuel shortage, airlines around the world are taking drastic measures to balance operations with profitability.

Companies like Alaska Air, American Airlines, Delta Air Lines, Southwest Airlines, and Jetblue Airways have decided to increase baggage costs, which could go up to hundreds of dollars depending on how much luggage you are carrying.

While low-cost US carrier Spirit Airlines sought emergency funding from the Trump administration, Delta Air Lines had notified it would trim capacity by 3.5 percentage points and also bump baggage fees to offset surging fuel costs. United Airlines, meanwhile, is cutting flights over the coming quarters and also boosting baggage prices but has been able to manage the price hikes without significantly impacting bookings.

Hong Kong-based Cathay Pacific said it would reduce flights between May and June, while Hong Kong Airlines, Spring Airlines, and Greater Bay Airlines are planning to increase fuel surcharges in the near term.

While British Airways-owner IAG had said in March it has no plans to ramp up ticket prices, Lufthansa said it will ground 27 planes due to rising costs from industrial action.

How to Deal With Ongoing Flight Cancellations

As flight cancellations take hold worldwide, those planning summer holidays could be at risk of losing money used for booking flights and accommodations. However, you are entitled to a refund or an alternative flight if your flight leaves from a UK or EU airport or arrives on a UK or European airline. You could receive compensation and even a refund or replacement flight if your ticket was cancelled less than two weeks before departure.

While airlines are mandated to provide meals, transport, and accommodation until the company makes arrangements to fly you to your destination, passengers on airlines not covered by the UK and EU rules should carefully check the flight terms.

If you have purchased a holiday package, you are protected under the Package and Linked Travel Arrangements, which makes the travel operator accountable for the complete vacation. They must arrange an alternative holiday of the same value or offer a refund in case flights are cancelled.

'The package travel regulations are the strongest protection that holidays have,' editor Rory Boland told The Guardian. 'Importantly, your provider is also responsible for getting you home if a fuel shortage should disrupt your return flight.'

However, if you have curated your own customised holiday plan, you could be in a less advantageous position compared with those with a package deal. Flight cancellations related to your DIY holiday plans do entitle you to a refund or a replacement flight, but there is no automatic right to claim refunds on hotel or other reservations.

However, you could opt for travel insurance to cover hotel costs. 'Travel insurance is there to fill the gaps that airlines don't cover. While airlines must refund or replace your flight, they won't usually cover knock-on costs like hotels, car hire or other prepaid bookings,' Hawkes stated.