THERE could be trouble ahead for those who have booked holidays to far-flung destinations as airlines are warning of even more flight cancellations.
The rising price and shortage of jet fuel caused by the Iran crisis means airlines may be forced to axe longer journeys.
Following the closure of the Strait of Hormuz, the price of jet fuel has risen sharply from $90 (£67) per barrel to as much as $200 (£150) per barrel – with oil traders now also expecting a shortage of it in the coming weeks.
As a result, there’s a rising risk of airlines cancelling services especially to long-haul destinations.
This is because airlines heading to far-flung places may not have enough fuel for the return journey.
The Times reported that the problem could even go on until summer quoting an industry source that said it could “take up to six months to get back to normal” – which sees us through to August.
Some airlines are already taking action to preserve fuel. Earlier this week, Air New Zealand said that it will be cutting back on flights until May 2026.
The airline will see roughly a five per cent reduction in its services which works out to around 1,100 flights.
Following suit, Scandinavian Airlines System (SAS) announced that it would be cancelling 1,000 flights.
Certain countries, like Vietnam have now warned that flights could be cancelled from April, affecting the Easter break.
Meanwhile, China and Thailand have halted exports of fuel to maintain their own supplies – which in turn will affect airlines operating in other countries.
Closer to home, Brits could be affected as some of its jet fuel is imported from the likes of Kuwait, Saudi Arabia and the UAE.
International Air Transport Association said that “Europe is among the most exposed, with 25–30 per cent of its jet fuel demand originating from the Persian Gulf.”
Meanwhile, Watson Farley & Williams, the energy, infrastructure and transport law firm, said: “If airports and airlines’ stocks of fuel are depleted for any length of time, airlines will cease to be able to fuel their aircraft and will have to reduce their operations.
“This may have far-reaching consequences.”
This implies that there could be a knock-on effect for airlines later on, too.
It added that “further flight cancellations can be expected, even by airlines operating from home bases where there is a reliable supply of fuel.”
Certain UK airlines are less affected for now because they have secured some of their fuel at a fixed price for a certain amount of time.
These include Ryanair, easyJet, British Airways and Virgin Atlantic.
Ryanair boss Michael O’Leary said the rise in jet fuel “won’t affect our costs and it won’t affect our low fares.”
For more on the Iran crisis, British Airways has cancelled all flights to Dubai until June.
Yet, these two beautiful holiday islands with direct UK flights are seeing ‘huge demand’ as Brits swerve from Dubai, says TUI boss.