Airlines competing for jet fuel is likely to lead to higher airfares, Martyn James says (Image: Getty)
The reopening of the Strait of Hormuz by Iran has raised hopes the war will end soon and flows of jet fuel will return to normal, but a consumer expert warns air travellers could still see airfares rise. Before US President Donald Trump announced the route’s reopening, there were warnings of a looming shortage of jet fuel, leading to warnings of higher ticket prices and flight cancellations just as the summer holiday season neared.
International Energy Agency Director, Fatih Birol, said on Thursday that Europe has “maybe six weeks” of remaining jet fuel supplies. Jet fuel is the biggest cost for airlines, making up about 30% of overall expenses, according to the International Air Transport Association. Prices of the refined kerosene-based oil product roughly doubled since the war began on February 28.
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Consumer rights expert Martyn James spells out your rights if an airline cancels your flight (Image: Martyn James)
Since then, none has passed through the strait, which accounts for 40% of Europe’s jet fuel imports. Airlines had been reacting with caution, acknowledging potential fuel issues while trying to reassure customers.
Some carriers have already passed costs on to consumers by increasing fees for baggage and other add-ons, embedding costs into ticket prices or raising fuel surcharges. A handful of airlines have cut flights.
Consumer expert, Martyn James, speaking before the reopening announcement, said it would not be in the interests of airlines to raise ticket prices and he expected them to do all they can to keep costs down.
Martyn, speaking on Thursday, told the Daily Express: “Even if the conflict is resolved tomorrow, we are going to see a huge jump in airlines competing for jet fuel. That will likely lead to higher prices. It will be more expensive to fly even if a solution to the conflict is found.”
He urged anyone who hasn’t yet booked their holiday flights to consider doing so soon before prices rise. The consumer rights expert said while there was currently no evidence of airlines profiteering, Brits should still be aware.
Martyn said: “Airlines can’t cancel a flight, offer a refund and re-advertise another flight at, let’s say, five times the price. That would be profiteering. Airlines would be foolish to do that. But I’m not saying it’s not going to happen.”
He suggested regulators would take a dim view if airlines did profiteer and they would be under greater scrutiny over the next few months just in case.
For anyone concerned about cancellations, Martyn said: “Don’t panic. Keep an eye on your emails and the airline’s app. Don’t cancel or agree to cancel your flight.
“If your airline says it will cancel, ask them to book you on another flight at the same price, either one of theirs or a competitor.”
By law, you have the legal right to a full refund or a replacement flight if your flight is cancelled.
If you are already part-way through a journey and don’t want a replacement flight, you have the right to a flight back to the airport you departed from.
According to ABTA, if your flight is cancelled and you are departing from the UK, your airline has to offer you the choice of a replacement flight at the earliest opportunity or a refund.
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The same applies if your flight has been overbooked and there aren’t enough seats.
If your return flight to the UK is cancelled and you are travelling inside the UK or with a UK or EU airline, then you are entitled to either a replacement flight as soon as possible or a refund.
For those flying from outside the UK not with a UK or EU airline will need to check the terms and conditions of your booking to see what you are entitled to.
Martyn suggested that anyone who finds themself in a price dispute with a carrier can take things further by complaining to an Alternative Dispute Resolution (ADR) scheme.
He said this is cheaper than going to court although the airlines get to choose which ADR they want to go with.
The expert said: “The simplest thing to do is make a formal complaint and go to the airline’s ADR scheme. They’re like an ombudsman. You can use this scheme to get a dispute looked at.
“Failing that, you have to threaten to take them to court. You can say to your airline, ‘I had a flight booked. You cancelled it, gave me a refund and offered me a flight at however many times the price’.”
The expert explained: “When you made a booking, you entered into a contract with the company. There may be reasons why they might be able to cancel, but they should not cancel and readvertise the price. But so far I have not seen evidence of that happening with airlines.”
For Brits looking to book a package holiday, Martyn recommended using a travel agent as they are usually part of trade association ABTA or the financial protection scheme, ATOL.
Martyn said: “If there’s a dispute, if you book a holiday through a travel agent, you’re covered by the Package Travel and Linked Travel Arrangements.
“They will provide a certain degree of protection, for example, getting refunds under certain circumstances.”
He added travel agents can also offer mediation services and going with a travel agent means there is someone there to help in case any issues arise.
The expert recommended checking your booking documents, which should say whether you have entered into a package holiday agreement. Martyn said: “If it doesn’t say ‘package holiday’, you may not be covered.”
On compensation, he said if an airline gives you more than 14 days’ notice of a cancellation, they don’t have to pay any.
If they give you less than 14 days’ notice, you can get compensation in varying amounts, depending on your flight’s place of departure. Amounts can vary from £220 for shorter flights, to £350 or £520.
This story originally appeared on Express.co.uk
