Holidays ‘very likely’ at risk as EU warns of ‘crisis’ | Money News

The EU has warned that Europe is in a “very serious crisis” as aviation fuel stocks start to run low due to the war in Iran and people might have to change holiday plans this summer.

“Unfortunately, it’s very likely that many people’s holidays will be affected, either by flight cancellations or very, very expensive tickets,” Dan Jorgensen, the EU energy commissioner, told Sky News.

“Even if we do everything we can do, if the jet fuel is not there, then it’s not there.”

Jorgensen added: “[Currently] it is primarily a crisis of prices and not yet a crisis of supply, but unfortunately we cannot be sure to prevent a crisis of supply, especially on jet fuel in the future, if the crisis continues.”

The International Energy Agency has warned that major supply issues could occur in the next five to six weeks.

Airlines are already taking steps to reduce demand: the Lufthansa Group, one of the biggest airline groups in Europe, has announced the cancellation of 20,000 flights in the coming months. Other airlines are increasing ticket prices on long-haul flights to cover the increased cost of fuel.

“If we had peace tomorrow and the Strait of Hormuz opens, I think we will manage without that happening, but I have to say that even in the best-case scenario the price crisis will still last for quite some time,” Jorgensen warned.

“Gas infrastructure has been ruined to a degree that will take years to rebuild and this means for months and maybe years yet we will see much higher prices than we had before this crisis started.”

The head of Italy’s Civil Aviation Authority told Sky News that people should consider spending their summer holidays in their home countries.

“In the past petrol prices have reached and exceeded more than $100 without any significant side effects on air travel but this time, the psychological effect is having a destructive effect on passengers,” Pierluigi di Palma warned.

“It is best to recommend holidays nearby, rediscovering beautiful places in our country.

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“For those who still want to risk taking a long trip, it’s a good idea to consider special insurance that can provide reassurance regarding a guaranteed refund in the event of a delayed or cancelled flight.”

The EU has announced measures to try and limit the effect of an energy crisis, including plans to speed up the use of renewable energies and incentives for households to install clean energy supplies like heat pumps and solar panels.

The EU is also encouraging member states to reduce tax on electricity in the hope it will persuade more people to buy electric vehicles.