Overview
- The Iran war and a blockade of the Strait of Hormuz have driven jet-fuel prices sharply higher, and airlines have already pared schedules as Germany’s airport group warns of a worst-case 10% capacity drop that could affect up to 20 million travelers this summer.
- Data from My Flight Path shows big gaps in fuel cover, with Jet2, Ryanair, easyJet and Tui largely hedged for 2026 while Turkish Airlines and several legacy carriers face higher exposure and have begun cutting routes.
- German officials said there is no domestic kerosene shortage and reported a release of 50,000 tonnes from strategic reserves to steady supply, and industry figures note most of Europe’s jet fuel is refined within Europe.
- Major tour operators including TUI, Alltours and Dertour said they will not raise prices on trips already booked, and consumer law caps any allowed package increases at 8% with a right to cancel if the hike is higher.
- Despite higher fuel costs, fares on many European routes have fallen as airlines discount to keep planes full, a shift experts see as temporary even as demand tilts toward destinations farther from the conflict such as the western Mediterranean and the Canary Islands.