Jet fuel crisis sparks rush for travel insurance as airlines warn of Summer cancellations
Interest in travel insurance has spiked over the last month after airline bosses warned of cancelled flights amid shortages of jet fuel due to the ongoing energy crisis.
Thousands of flights have been cancelled, and more cuts are planned, as global airlines struggle with surging fuel costs and supply issues caused by the war in Iran.
Ryanair chief executive, Michael O’Leary, has warned that his budget airline may need to cancel 10 per cent of its flights this summer as we enter this “unknown scenario”. Meanwhile, regional airline Skybus announced its flights between Cornwall Airport Newquay and London Gatwick would be scrapped, citing fuel costs.
Jet fuel prices reached $195 at the end of March, up nearly $100 from the end of February when the war began.
Stressed travellers seeking insurance
As a result, there has been a surge in searches for travel insurance, according to Google Trends data, with ‘travel insurance UK’ up 50 per cent over the last month.
Travel insurance premium costs typically range from £25 to £45 for single trips and £60 to £90 for annual multi-trip policies, but as the situation in the Middle East escalates, insurers are monitoring the situation.
Insurance coverage depends on the precise cause of the cancellation and the policy’s wording; some travel insurance policies may cover cancelled flights, but not all.
If a flight is cancelled, speak to their airline or tour operator first, who will be able to help with refunds, re-routing or booking alternative arrangements.
However, according to the UK Civil Aviation Authority (CAA), if your flight’s cancelled, you have a legal right to get a full refund from your airline for any unused parts of your ticket, or a replacement flight to your destination.
Also, if a flight is booked using a credit card, the buyer may also be able to claim back purchases under the Consumer Credit Act if they haven’t received the goods or service they paid for, and/or through the debit card chargeback system.