Travelling for Work? Here’s What You Need to Know

As of mid April 2026, the airline industry is facing a global aviation fuel shortage due to restrictions in the movement of freight through the Strait of Hormuz. 

Because the Strait handles approximately 20% of the world's oil supply and is a critical corridor for refined jet fuel, the impact is being felt unevenly across the globe.

Potential Impacts to U of A Travel and Travellers:

If you have travel planned to Asia or Europe, please plan for the potential of:

• Flight Cancellations: Airlines (notably Transat, WestJet and several European/Asian carriers) are preemptively consolidating routes to save fuel.  
  • Lufthansa: The airline has announced the cancellation of 20,000 short-haul flights between May and October 2026. This move is specifically designed to conserve approximately 40,000 metric tons of jet fuel. 
  • KLM: Has officially begun reducing frequencies and cancelling select flights to manage dwindling reserves.  
  • Regional Carriers: Smaller regional airports, such as London Oxford Airport, are already seeing significant disruption. Fuel rationing at these hubs is prioritizing long-haul and "essential" services, leading to the grounding of many private and short-haul regional flights.
• Route Changes: Some long-haul flights are being rerouted or shortened to optimize fuel efficiency. This may cause travellers to take ground transportation between cities in the event flights are consolidated to a larger flight hub.

Where are the shortages most severe?

• Asia: Japan and South Korea, which import 80–90% of their crude from the Persian Gulf, are seeing significant impacts.
• Europe: The International Energy Agency (IEA) recently warned that Europe may have only six weeks of jet fuel supplies remaining. Major hubs are at risk of physical shortages at airports if alternative supply lines don't stabilize the flow soon.

Things to consider:

• Compensation: Because these cancellations are tied to a geopolitical conflict, many airlines are claiming "extraordinary circumstances," which may make it difficult to claim standard EC 261 compensation for delays. However, they are still legally required to provide rebooking or full refunds.  
• Reduced inventory: Although an airline is responsible to reprotect (rebook) or provide a refund for a cancelled flight, it does not mean there will be inventory. Travellers could be delayed days before another flight is available.
• Insurance coverage: As of Monday, April 21, 2026, fuel shortage is now considered a known risk. Travel after that date will not be eligible for protection under most insurers.
• Additional cost: In the case a flight is delayed, diverted or cancelled, any additional costs incurred are the responsibility of the department.

Actions for Travellers to Europe or Asia (May 2026)

Given the severity of the shortage and the announced flight reductions, travelers flying to Europe in the next month should take the following proactive steps: