Airlines are jacking up prices and holidaymakers are cancelling trips just weeks before Easter, as the Middle East crisis takes a hammer to global tourism.
Fuel Prices Skyrocket as Conflict Shuts Key Oil Route
Major carriers, including Cathay Pacific, have announced steep price hikes this week, driven by soaring aviation fuel costs. Cathay Pacific slapped on an emergency fuel surcharge — doubling fees on key routes between Hong Kong, Europe, and North America.
The war in the Gulf region has pushed crude oil prices up by a third, topping $100 a barrel. Jet fuel costs have nearly doubled, soaring from around $830 to over $1,500 per ton since the conflict escalated.
A major factor is the closure of the Strait of Hormuz—the vital shipping lane accounting for 20% of global oil supply—following threats by Iran to strike any vessel passing through. In recent days, at least 18 attacks on ships have been confirmed in the area, causing chaos in fuel logistics.
Tourists Face Bigger Bills and Broken Plans
Families across the globe are feeling the pinch. European holidays have ballooned by roughly £7,500 due to fuel hikes and route disruptions.
‘We’ve spent tens of thousands of dollars on this holiday,’ Ms Earle said. ‘We should get at least half of that back from Emirates eventually.’
Meanwhile, Dubai’s glamorous appeal has taken a massive hit. The city’s beaches, hotels, and pools lie deserted amid ongoing missile and drone strikes. High-profile expats like Rio and Kate Ferdinand and Petra Ecclestone have fled, leaving the once-buzzing emirate eerily quiet.
Bargain Holidays Galore — But for How Long?
Destinations near the conflict, such as Turkey, Greece, Cyprus, and Egypt, are slashing prices to as low as £100 for a week’s holiday in a bid to lure nervous Brits. Travel firms warn demand has tanked since the US-Israel airstrikes began, and with no end in sight, the industry faces prolonged pain.
Cheap deals include:
- £100 for seven nights in Marmaris, Turkey, with flights from Luton
- £130 for a week in Corfu, Greece, from Birmingham
- £165 for a Cyprus getaway with flights from Liverpool
Which Airlines Are Hiking Fuel Surcharges?
- Cathay Pacific: Fuel surcharges doubled on Hong Kong-Europe/North America routes.
- Qantas: Long-haul routes via the Middle East are facing price hikes.
- United Airlines: CEO warns of ‘meaningful’ profit hit, ticket prices to soar further.
- Air France & KLM: Economy fares boosted by about £43 for return flights.
- Air New Zealand: Added NZ$20 to short-haul and NZ$90 to long-haul one-way fares.
- SAS Scandinavian Airlines: Adjusted fares to cover fuel price rise.
- Air Transat, Air Canada, Air India, AirAsia, Hong Kong Airlines, Thai Airways, Vietnam Airlines: All introduced or increased fuel surcharges.
Energy expert Dr Amrita Sen told MPs: ‘Jet fuel prices have gone crazy, with costs above $300. Airlines can’t easily source alternatives, so airfares will stay high for months.’
While IAG (British Airways’ parent) uses hedging to avoid immediate hikes, many carriers have passed costs on swiftly. Big European budget airlines like Wizz, Ryanair, easyJet, and Jet2 have yet to confirm changes.
The tourism fallout from the Middle East conflict is hitting wallets hard just as families prepare for Easter getaways. With fuel costs soaring and unrest showing no signs of easing, travellers are bracing for more turbulence ahead.
