British holidaymakers are facing soaring flight costs and pricier package holidays — even for those who have already made bookings — as a looming jet fuel shortage threatens to wreak havoc on travel plans.

Triggered by the Iran War and the effective closure of the Strait of Hormuz, oil exports from the Middle East have ground to a halt compared to earlier this year, leaving European jet fuel reserves severely depleted.

Typically, European nations maintain several months’ worth of jet fuel stockpiles at any given time, according to an IEA report published last week. “Every passing day that the Strait of Hormuz remains shut, Europe is edging closer to supply shortages,” warned Amaar Khan, head of European jet fuel pricing at Argus Media. “The Strait accounts for around 40% of Europe’s jet fuel imports, but no jet fuel has passed the Strait since the war broke out.”

There are four principal ways the jet fuel crisis could hit British holidaymakers: rising flight prices, additional fees, cancelled flights and package holiday surcharges. Each is outlined below.

Rising flight prices

Jet fuel — a refined kerosene-based oil product — represents airlines’ single largest expenditure, accounting for roughly 30% of total operating costs, according to the International Air Transport Association. Since the outbreak of war, jet fuel prices have approximately doubled, with shortages potentially looming on the horizon.

Several airlines have already begun pushing up ticket prices in response. Just last week, it emerged that Virgin Atlantic had hiked some flight prices with an additional £50 fuel surcharge on economy-class tickets, while premium economy fares are rising by £180 and business class by £360.

Air France and KLM prices are also set to increase. Passengers are likely to face an extra €50, pushing the fuel surcharge to €100 (£86.98) on top of the standard fare. Meanwhile, flights to the United States, Canada and Mexico could rise by €70 (£60.89), and an economy return trip could cost an additional €10 (£8.70).

If you have already booked your flights, there is no need to panic. You will not be asked to pay anything extra on your existing air fare retrospectively. Once payment has been made, airlines cannot chase you for further funds — unless the Government raises aviation charges, which does not appear to be on the cards.

Extra fees

Many travellers will have secured their flights months in advance, prior to the US and Israel attacking Iran and fuel prices beginning to surge. Because airlines are unable to increase fares that have already been booked, despite now turning a smaller profit on them, they have begun exploring alternative means of generating additional revenue. American Airlines has announced it will increase checked baggage fees by $10 (£7.40) each for the first and second checked bags and by $150 (£111) for the third checked bag on domestic and short-haul international flights. Southwest Airlines has confirmed it will raise checked baggage fees by $10 for the first and second bags, pushing costs up to $45 (£33) for the first bag and $55 (£40) for the second.

Since travellers frequently add additional luggage shortly before departure, these increases could affect passengers who booked flights prior to the invasion.

No major European carriers have implemented comparable changes.

Cancelled flights

Last week, International Energy Agency Director Fatih Birol said Europe has “maybe six weeks” of remaining jet fuel supplies and warned the global economy faces its “largest energy crisis.”

Numerous major carriers have already scrapped flights due to soaring fuel prices and declining demand, with further cancellations expected.

Swedish flag carrier SAS has confirmed it will axe 1,000 flights in April owing to elevated oil and jet fuel prices, having already cancelled a “couple hundred” flights in March. United Airlines revealed that five per cent of flights will be scrapped in the second and third quarters of 2026, while Dutch carrier KLM has cancelled 160 flights for the forthcoming month. Other carriers, such as BA, have suspended entire routes to parts of the Middle East due to the ongoing conflict, while Virgin Atlantic announced earlier this month that it would be permanently axing its London flight to Riyadh from April.

Under UK law, if your flight is cancelled more than 14 days before it is due to depart, you are not entitled to compensation. However, your airline does have to offer you a full refund or help you find an alternative flight.

In the latter case, it’s up to you whether to fly as soon as possible after the cancelled flight, or at a later date that suits you. Although most airlines will book you onto another of their flights to the same destination, if an alternative airline is flying there significantly sooner or other suitable modes of transport are available, then you may have the right to be booked onto that alternative transport instead. You can discuss this with your airline.

Given that airfares may be considerably higher than when you originally booked, opting for an alternative flight rather than accepting a refund could well work out in your favour.

Extra package break costs

A largely overlooked clause buried within package holiday terms and conditions could result in the price of a package holiday rising by hundreds of pounds – even after you’ve already completed your booking and payment. An article by Which? highlighted an obscure clause contained within Package Travel Regulations. It reveals that UK holiday companies can impose a supplementary charge of up to 8% on a package holiday price, without being obliged to offer a free cancellation option, under three particular circumstances.

These circumstances include: a destination introducing additional taxes or other charges, a significant shift in currency exchange rates, or a rise in the price of fuel or power. Given the ongoing Middle East conflict, fuel costs have been climbing considerably, which means package holiday operators could potentially invoke this rule for Brits who have already booked their holidays should these expenses continue to rise.