If you’re traveling to Europe for a summer getaway, you might want to double-check that your flight is actually scheduled for take off.
The war in Iran is exacerbating long-running problems throughout the travel industry but hitting airlines especially hard. The price of jet fuel has doubled since the war began, and European airports are saying they could run out altogether within the next few weeks if oil doesn’t start to flow through the Strait of Hormuz soon.
In 2023, I wrote about the summer travel season from hell, when staffing shortages, a lack of government oversight, and a pandemic-induced hangover caused virtually every facet of the industry—from flights to rental cars to hotels—to malfunction. But this summer could make that meltdown look quaint by comparison. In fact, International Energy Agency head Fatih Birol called the current disruptions “the largest energy crisis we have ever faced in history.”
European carriers are feeling it more than most. Those airlines get much more of their jet fuel supply from the Middle East than the U.S. does, and the likes of KLM Royal Dutch Airlines and Deutsche Lufthansa AG are already canceling entire routes due to “stratospheric” costs. On the other side of the Atlantic, Air Canada recently announced it’s suspending some flights from Montreal and Toronto to New York from June through October as prices soar higher than airlines can bear.
Most domestic airlines, meanwhile, aren’t necessarily canceling routes wholesale because of energy shocks just yet, but they are tacking on fees seemingly wherever they can while raising ticket prices. The exception, of course, is Spirit Airlines, which says high fuel prices were the final nail in the coffin. It shut down completely last week, which is likely to lead to even higher prices at the remaining U.S. airlines.
But even if the Strait actually reopens tomorrow (for real this time), you’ll likely still see higher prices in the weeks and months to come, whether in the form of higher baggage fees or fuel surcharges. Or the absence of complimentary Biscoff cookies.
“We have to find ways to get that cost passed through to consumers,” Delta Airlines CEO Ed Bastian said in April of the extra $2.5 billion it’s spending on jet fuel this quarter because of the war, Bloomberg’s Kate Duffy reported. “It won’t happen overnight.”
Because airlines pre-sell tickets, they can’t simply jack up the cost for summer flights now to account for the jet fuel price surge. There’s one unsatisfactory solution that travelers should be aware of: Airlines may ultimately decide to cancel flights—and refund affected customers.
While a very small share of flights have been canceled so far, summer travelers should be on the lookout for cancellation emails if the war continues to drag on. And if your flight is canceled—or significantly delayed—your options for what to do next will vary depending on the airline and its country of origin.
Flights that leave from or arrive into an airport in the United Kingdom or European Union must give you a refund or offer an alternative flight. And if the cancellation happens less than two weeks before departure, you may be entitled to additional compensation. For those stranded just before their return flight is set to take off, the airline is also on the hook to pay for meals, transportation, and accommodation until you can get home.
In the U.S., things are a little more complicated. (And will only be more so as the Trump administration continues to cut consumer protections.) Being offered a refund or travel credits often depends on the type of ticket you purchase, even if the airline cancels the flight. Basic economy fares, for instance, are the most restrictive—you’re usually not guaranteed recompense.
Upgrading to a slightly more expensive ticket can save you in the long term: Not only can you get refunded if something goes wrong, but you can also cancel it and buy a cheaper ticket if prices do come down. (It’s different for those affected by the Spirit shutdown.)
Of course, there are other parts of trips that we plan thinking we'll actually make it to our destination. Travel experts advise double checking all of the cancellation policies and reaching out individually to the vendors to request a refund if you find yourself unable to take your planned trip. If you paid via credit card, dispute the charges as a last resort.
And if you’re reading all this and still want to book a flight, travel experts say to do it sooner rather than later: The closer you get to your departure date, the higher the ticket price is likely to be, especially during the peak travel season. And try to avoid basic economy, won’t you?
-Alicia
Travel woes in the news
- The saga of Spirit Airlines sure has been something to watch. The low-cost carrier is probably partially to blame for much of the race to the bottom we see with basically all U.S. carriers now, but it’s also sad that this budget option is no longer available for cash-strapped folks.
- This is a sweet tribute to Spirit from a frequent flier.
- On the complete opposite end of the spectrum is Delta 360°, an invite-only rewards program that has some truly outrageous perks.
- The national average gas price is $4.56 per gallon as of Friday morning, according to AAA. Meanwhile, energy companies are raking in record profits.
- Americans are canceling, rerouting, and rescheduling their summer travel plans.
- Are you traveling this summer?
What else we’re reading (and listening to)
- I loved this piece from friend of The Purse Laura Fenton about the “buy it for life” movement. I definitely love to hold onto things forever (I’m working on this newsletter sitting at an antique desk my parents bought used in 1970), but buying high quality products feels harder than ever unless you have time to dedicate to buying secondhand. -Lindsey
- I’m so so worried about the proliferation of AI in schools. (Do third graders really need to be using it? Maybe they should learn to read, write, and reason on their own first??) Considering it’s sending adults into psychosis and “brain fry,” I have zero faith it’s good for kids. -Alicia
- I’ll admit I didn’t closely follow the WNBA salary negotiations this year beyond reading a few headlines, but I got sucked into this NPR interview with Napheesa Collier, who plays for the Minnesota Lynx. Collier talked with Steve Inskeep about the salary negotiations, her entrepreneurial streak, and what it’s like to get death threats from sports bettors upset about a game’s outcome. -Lindsey
- Really enjoyed this interview with author Isabel Allende about her mother, writing, and much more. -Alicia
- Hot take: I don’t usually enjoy listening to old white guys pontificating about the economy. But for some reason, I was curious about hedge fund manager Ray Dalio’s interview on the New York Times podcast Interesting Times, where he discusses his many predictions for the future of the U.S. economy, including whether we’re living through the end of the empire. It was a really interesting listen. I learned a lot, and I’m once again wondering if I should invest in gold. Also, on the very off chance that Dalio (or his people) read this newsletter, please drop us a line. I’d love to interview you for The Purse! I’ve got some further questions! -Lindsey
- The Pulitzers were announced this week, and I can’t get over the winning article for feature writing about the tragic flooding of the Guadalupe River in Texas last year. -Alicia
On our radar
- Alicia and I are working on putting together a series around inheritance, and we’re hoping to find someone to do an inheritance diary on the topic. Does that sound like you? Reach out!
- This week personal finance expert Beth Kobliner released a new edition of her classic book, Get a Financial Life: Personal Finance in Your Twenties and Thirties. Alicia wrote about four easy money tips Beth shares in her book that you could easily apply to your own life (whatever your age). #partner
Comment of the week
On Monday April 27 I bought a last minute $177 Spirit Airlines round-trip flight to Vegas for 24h to see Phish at the Sphere ($225 ticket) on Thursday April 30. I then put $2 in a slot machine and won $390, effectively covering my whole trip. So the best money I spent in April was $2 on a slot machine, which also included the privilege of being on one of the last ever Spirit Airlines flights 🫡
-Ashley Louise on the best money she spent in April.
Stat of the week
32% of Americans say their mother was their primary financial teacher growing up, compared to just 20% who say it was their father.
-According to a new study conducted by YouGov on behalf of Greenlight
What else we published on The Purse this week
Let us know!
Alicia Adamczyk
Thoughts on a classic.
Alicia Adamczyk
An executive-assistant-turned-data-scientist explains how she did it.
Alicia Adamczyk
Our second follow-up!
Lindsey Stanberry
Best money we spent last week
- I adore Freddy’s 4th grade teacher, and while I’m not usually very good at keeping up with school events, I did get my act together to get her a little something for Teacher Appreciation Week. I picked up a Powerhouse Books gift card, a cute Snoopy button, and a bag of lime Tostitos (her favorite), and Freddy wrote the sweetest note. It was $35 well spent! -Lindsey
- I still owed Chris a Christmas gift (it happens), and he got some shorts this week that fit the bill. ($88) -Alicia
