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 theStrait of Hormuzdrove 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.
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.
Asflight cancellations take hold worldwide, those planning summer holidays could be at risk of losing money used for booking flights and accommodations. However, you areentitled to a refund or an alternative flightif 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.
Source: International Business Times UK
