Airlines have hiked fares and families are scrambling to cancel holidays just two weeks before Easter as the conflict in the Middle East threatens to cripple the tourism industry. The war between the US/Israel and Iran has sent crude oil prices above $100 per barrel, with jet fuel costs nearly doubling since late February.
Cathay Pacific became the latest airline to introduce an emergency fuel surcharge, effectively doubling it on most routes from March 18. The surcharge for tickets between Hong Kong and Europe purchased in Hong Kong will rise from HK$569 to HK$1,164. Air France also announced it would raise economy class fares for short-haul destinations by €50 (£43) to reflect rocketing jet fuel prices.
The conflict has effectively closed the Strait of Hormuz, a key transit route for jet fuel from the Middle East, through which a fifth of global oil and liquid gas travels. Iran has threatened to attack any ship entering the strait, with 18 attacks on vessels confirmed by the UKMTO.
In Dubai, once a popular destination for British tourists, beaches and hotels stand deserted as strikes continue. Thousands have fled the city, with some residents believing it is 'finished'. The Fairmont hotel on Palm Jumeirah was among the targets hit by missiles and drones.
Families like that of Natasha Earle, an accountant from Western Australia, have seen their five-week European trip upended, costing roughly £7,500 more as they reroute to avoid disruptions. 'We've spent tens of thousands of dollars on this holiday,' said Ms Earle, who is due to fly at the end of this month.
