Back to Headlines
Business
Apr 19, 2026

How Fuel Shortages and Border Delays Impact Flight Cancellations and Holiday Rights

AI Summary
The war in the Middle East has driven oil prices from $72 to $119 per barrel – a 65% jump – threatening jet‑fuel supplies and prompting possible flight cancellations from May. Travelers face differing protections: EU‑UK passengers are entitled to refunds, re‑routing and compensation, while package‑holiday customers benefit from the Package and Linked Travel Arrangements, and credit‑card holders can invoke Section 75.

What has happened?

The war in the Middle East has choked the Strait of Hormuz, cutting oil‑shipping routes. Crude prices surged to $119 a barrel in March from $72 pre‑war – a rise of $47 or roughly 65%. ACI Europe warns that unless stable supply returns within three weeks, jet‑fuel shortages will force cancellations, potentially from May. Susannah Streeter of Wealth Club notes a growing risk for leisure flights.

If your flight is cancelled

For flights departing from or arriving at UK/EU airports on UK/EU carriers, passengers must receive a refund or an alternative flight. Cancellations less than two weeks before departure also trigger compensation under EU Regulation 261/2004 – up to €600 depending on distance. Airlines must provide meals, transport and accommodation while stranded.

  • Refund or re‑routing – mandatory for covered flights.
  • Compensation – up to €600 if notice is under two weeks.
  • Support services – meals, hotel, transport.

Package holiday travellers

Package holidays fall under the Package and Linked Travel Arrangements. The tour operator must either offer an alternative holiday of equal value or a full refund if the flight leg is cancelled. Rory Boland of Which? Travel stresses that the provider also arranges return transport. Surcharges for fuel price rises can be up to 8%; any higher charge gives the consumer a right to cancel with a full refund.

Self‑arranged trips

Travelers who book flights and accommodation separately have weaker protection. While airlines must refund or re‑book the flight, hotels and other services are not automatically covered. Matt Gatenby of Travlaw advises checking travel‑insurance policies, which may cover hotel losses, though terms vary.

Credit‑card protections

Purchases over £100 made with a credit card are covered by Section 75 of the Consumer Credit Act, making the card issuer jointly liable if the airline fails to deliver. This recourse is secondary to airline refunds and does not extend to separate hotel bookings.

Pre‑booking advice

Experts recommend a “belt‑and‑braces” approach: book a package holiday with a credit card, secure comprehensive travel insurance, and choose accommodation with flexible cancellation. Be aware of potential delays at European borders – the EU’s new Entry‑Exit System (EES) can cause up to three‑hour queues, jeopardising flight connections.

Airline and hub considerations

Large carriers are more likely to have fuel‑hedging contracts, insulating them from immediate price spikes. Hub airports such as Heathrow and Barcelona typically have multiple fuel supply routes (pipelines and trucks), offering greater resilience and more alternative flights in case of cancellations.

Booking timing

Historically, fares rise as departure approaches, and the cheapest seats are found early in the sales cycle. However, limited summer inventory means some airlines may later discount if demand softens due to fuel‑price anxiety.