Continued from page 48
issue. The longer the war goes on, the bigger the issues we’ll have. Some airlines are hedged, but all are exposed to the pricing.” Major US carriers face
a more than $11 billion hit already as, unlike most European carriers, they don’t hedge by agreeing to buy fuel at prices set months in advance. The US government now
forecasts an average jet fuel price this year of $2.67 a gallon, 37% up on its February estimate, implying added costs of $11.6 billion. However, Iata reports jet fuel in Europe averaged $4.57 a gallon, or $192 a barrel, last week. United chief executive
Scott Kirby warned within days of the war starting that the fuel price would have a “quick” impact on fares. BA partner American Airlines has warned every $0.01-per-gallon increase in the fuel price will add $50 million in costs. Most airlines in Europe are
well hedged for the next few months, but the higher prices will feed through eventually. Institute of Directors chief
economist Anna Leach, who also addressed the Corporate Travel Summit, warned there could be “permanent” effects on the costs of oil and insurance depending on “the nature of the peace that comes out” of the war and whether “risk is judged to be permanently higher”. Deloitte chief economist Ian
Stewart warned this week: “The risks to the global economy are mounting. A month or two with oil at $100 per barrel would probably be manageable. If oil got too much over $120 and threatened to stay there, the risks would mount significantly.”
European Parliament approves reform of PTD
Ian Taylor
The European Parliament approved enhanced rights for package travellers last week, giving a green light to a reformed Package Travel Directive (PTD). The revised directive, adopted on
March 12 with just two votes against, will mirror the reformed UK Package Travel Regulations (PTRs) by bringing Linked Travel Arrangements (LTA) within the definition of a package. Online purchases of combinations of services offered by separate traders will form a package where customers’ data is transferred and contracts concluded within 24 hours. However, the updated PTD will
go beyond the PTRs by extending travellers’ rights to cancel trips and secure refunds in the event of “extraordinary circumstances” not only in their destination but “at the place of departure” or that “significantly affect the journey”. Whether circumstances are
“extraordinary” will be determined
Tour operators will be required to acknowledge complaints within seven days and respond within 60 days. The reformed PTD also specifies
EU travellers’ rights are set to be enhanced
“on a case-by-case basis” but “official travel recommendations” such as Foreign Office advisories “may serve as indications”. The new directive also sets out
rules on the use of vouchers, or refund credit notes, stating travellers will have the right to refuse a voucher and request a refund within 14 days. European Parliament rapporteur
Alex Agius Saliba said: “In the case of extraordinary circumstances that affect any part of their trip, travellers will be able to cancel with a full refund.” The revised directive sets clear timelines for handling complaints.
that, if an operator collapses, customers should be refunded from a member state’s insolvency guarantee fund within six months, or nine months in the case of complex bankruptcies. The revised PTD has still to be
formally adopted by the Council of the EU. Member states will then have 28 months to transpose the directive into national law and another six months before the rules apply. The European Council and
Parliament confirmed agreement on reform of the PTD last December on the same day as the UK government confirmed limited changes to the PTRs. The Department for Business
confirmed LTAs will be removed from the PTRs and that the regulation dealing with redress when services are cancelled will be amended “to help organisers recover costs from suppliers”. UK legislation to reform the PTRs is expected by June.
On the Beach reports slowdown in east Med sales
On the Beach reported “limited exposure” to the war in the Middle East in a trading update ahead of its annual general meeting and half- year results to the end of March. However, it acknowledged “a
significant slowdown in demand following the onset of conflict in
46 19 MARCH 2026
the region, particularly to Turkey, Greece, Cyprus and Egypt”. It added: “When the conflict
will end and the shape of recovery in demand to these destinations are unknown. Both will impact group profitability.” As a result, On the Beach said it
was “temporarily suspending” its profit guidance for the year. Chief executive Shaun
Morton noted the company recorded its “highest-ever volume trading day on February 2” and said: “Momentum has been
building since we entered 2026.” However, he said: “Our teams
have been working round the clock [since the war began] to support customers in resort and to enable a return home as soon as possible.”
travelweekly.co.uk
Shaun Morton
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