Tourists planning summer holidays are facing a tough decision due to soaring jet fuel prices caused by the Middle East conflict. The global average jet fuel price is over double its level from late February, affecting flight costs worldwide.
In the U.S., jet fuel prices have surged to over $4.60 per gallon, up sharply from pre-conflict levels. Even if tensions ease, the impact on fuel prices and airfares is expected to linger.
Airlines are responding with capacity cuts and fare increases. United Airlines reduced planned flights by 5%, while Scandinavian carrier SAS is cancelling at least 1,000 flights next month. Cathay Pacific raised prices across all routes, and Thai Airways signaled fare hikes between 10% and 15%. Carriers like Lufthansa and Ryanair have mitigated some exposure through hedging programs.
Anita Mendiratta, an aviation expert, warns of potential disruptions in jet fuel deliveries to the UK as summer travel season approaches. She explains that airlines prioritize high-revenue routes during crises, potentially reducing leisure options for travelers.
Travel agencies report growing concerns among tourists, who are delaying bookings or opting for flexible plans. Booking.com advises setting up price alerts to track fluctuations. The European Commission urges citizens to consider traveling less to conserve energy resources.
For travelers, booking earlier with flexible options may offer protection against further price spikes or capacity cuts. However, monitoring developments closely remains prudent as the situation remains volatile.