Major airlines including TUI, Ryanair, EasyJet and Jet2 have issued updates on jet fuel supplies amid the ongoing Iran war, as the Strait of Hormuz remains closed and affects holiday demand. Passengers are anxious that their summer holidays may be disrupted by the conflict, now in its third month.
Fuel Shortage Fears
The war has led to fears of jet fuel shortages, which could cause airline chaos this summer. The conflict in the Gulf has resulted in higher fuel prices for drivers and prompted concerns about rising air fares and cancelled flights. The website MoneySavingExpert reviewed 40 travel insurance policies and found only a few that would cover the financial knock-on effects of a flight cancellation linked to fuel shortages.
BBC and ITV star Martin Lewis said: "People's hotel costs, if they book separately, and other knock-on costs, are potentially at risk. Once you understand that you have no rights, and they say: 'We'll give you a voucher'… you suddenly realise you're doing well, not badly."
TUI
TUI has assured holidaymakers that their peak summer flights will go ahead, despite fears of aviation fuel shortages. Mathias Kiep, CFO of Tui Group, told The Independent: "I'm very much convinced that we will see no shortage in the next 10 weeks. There's definitely enough fuel." He added: "We think that the discussion on fuel is a little bit artificial as we do see no shortages for the next few weeks. I would also see no impact in the summer at all except prices – and for the higher prices, we are luckily hedged. We do see that Europe now gets more oil from other countries like Nigeria because the increased prices made the production there profitable. We see that consumption is significantly lower than a year before and refinery capacity is also up."
Ryanair
Ryanair said it has "almost zero concerns" about its jet fuel supplies this summer amid fears over widespread cancellations. However, it warned that holidaymakers booking later this year could face higher fares. The budget airline's chief executive, Michael O'Leary, said Europe had now found plenty of alternative sources of jet fuel. Persistent consumer uncertainty had led to lower summer bookings than usual, keeping fares down, he added in an update on Monday (May 18).
EasyJet
EasyJet confirmed it was not seeing any disruption to fuel supply and continues to operate flights and package holidays as normal. The airline said it was not making any changes or cancellations. Sophie Dekkers, CCO of easyJet, said: "We are always focused on offering low fares and with around 40% of our fares this summer still available for under £50, now is a great time to book. And to ensure people feel confident to book, we've launched our Book with Confidence Promise which guarantees that the cost of flights and package holidays will stay fixed after booking and we will not add fuel surcharges, protecting customers from increased fuel cost. We are operating as normal, not making cancellations and are looking forward to taking millions of people on their well-deserved holidays this summer."
Jet2
In the latest Jet2 update a week ago, the airline reported that package holidays have become the preferred option for travellers, with 51 per cent choosing this booking approach - a 5 per cent increase since February. During the same period, those favouring bookings through separate providers has dropped by six percentage points to 20 per cent, while accommodation-only bookings have plummeted to just 2 per cent. Steve Heapy, CEO of Jet2, stated: "Consumers want assurance during times of uncertainty and package holidays provide that assurance. On top of all the protection that our package holidays guarantee, Jet2 is well known as being a consumer champion that goes above and beyond to look after customers. Ahead of a busy summer season, this means new and existing customers know that their well-deserved holidays are in the very best hands with us, and we are very excited about welcoming everyone onboard and taking them on their breaks."
