Summer holidays could be cancelled: Starmer
Key Points
- Keir Starmer has warned Britons their summer holidays could be cancelled as the Iran war squeezes global jet fuel supplies.
- Global jet fuel shipments fell to 2.3 million tonnes last week, the lowest since records began in 2017, with UK airlines holding just five to six weeks of supply.
- Ministers are preparing to let UK carriers use American Jet A fuel as an emergency measure to keep flights in the air.
- IAG and British Airways will raise fares, while Jet2 has refused surcharges and EasyJet faces a potential 560 million pound loss.
- Flight prices could stay elevated for up to eight months according to Treasury chief secretary Darren Jones.
Prime Minister Keir Starmer has told Britons their summer holidays could be in jeopardy as the Iran war chokes global jet fuel supplies, with shipments collapsing to 2.3 million tonnes last week, the lowest level since records began in 2017.
Speaking to The Cathy Newman Show on Sky News, Starmer said the conflict could force families to change where they holiday and what they buy at the supermarket, while major UK carriers warn they have just five to six weeks of fuel left.
The Strait of Hormuz blockade, which carries a fifth of the world’s oil, remains effectively shut despite a US to Iran ceasefire agreed on 7 April.
The Prime Minister stopped short of confirming food and fuel shortages but conceded that habits would shift if the conflict drags on, telling viewers: “We’ll see how long the conflict goes on.”
He insisted Britons should not panic, pointing to a Middle East Response Committee meeting he is chairing today which includes Bank of England representatives weighing the economic fallout.
Oil prices hit a near three-week high on Monday after President Donald Trump cancelled an envoy visit to Pakistan, dashing hopes of progress on peace talks.
What ministers are doing about jet fuel
Ministers are preparing to grant UK airlines emergency permission to use Jet A fuel, the variant currently reserved for US carriers, in a bid to stop flights being grounded altogether.
British, European and most global airlines run on Jet A-1, which shares specifications with the American fuel but has a higher freezing point, meaning the two are interchangeable in any jet aircraft.
The proposals, first reported by the i Paper, are expected to be announced this week and would hand carriers a critical lifeline ahead of the peak summer travel window.
The government is also considering softening the 80 per cent slot usage rule at airports, which currently forces airlines to operate scheduled slots or risk losing them, a move that would let carriers cut capacity without permanent damage.
How airlines and shares are reacting
IAG, the FTSE 100 owner of British Airways, has confirmed it will raise prices to reflect higher fuel costs, while budget carrier Jet2 has refused to add surcharges.
Jet2 boss Steve Heapy said holidaymakers “have every right” to enjoy their trips without extra costs, although the company reported on Wednesday that travel disruption fears are pushing Britons towards last-minute bookings.
Wizz Air has cut profit guidance by around 50 million euros since the conflict began, taking forecasts to a 25 million euro loss, and short sellers have piled into the stock.
EasyJet shares were hammered earlier this month after the carrier forecast a loss of up to 560 million pounds, with a single fuel purchase alone adding a 25 million pound hit.
Gerald Khoo, an analyst at Panmure Liberum, told CityAM that carriers are reluctant to slash capacity because they want to be ready if the crisis lifts suddenly.
He warned that if governments are forced to ration flights, major hub airports and their national flag carrier residents would likely be prioritised, leaving smaller airlines harder hit.
What this means for your summer holiday
- Check whether your airline has hedged fuel costs or plans to add surcharges before booking, as IAG has confirmed price rises while Jet2 has not.
- Book directly with carriers and pay by credit card to secure Section 75 protection if flights are cancelled. Confirm your travel insurance covers cancellation due to fuel shortages or geopolitical disruption, as standard policies may exclude these.
- Consider package holidays under ATOL protection rather than separate flight and hotel bookings, which give you stronger refund rights.
- Watch for the government’s Jet A fuel announcement this week, which could ease pressure on flight schedules into August.
- If your trip is in the next six weeks, contact your airline now to understand contingency plans rather than waiting for cancellation notices.
