What to do in case your flight is canceled during the fuel crisis (and how to prepare)

Jet fuel prices continue to surge as the U.S.-Israel conflict with Iran drags into a third month and disruptions in the Strait of Hormuz continue to strain global oil shipments.

The International Air Transport Association reports jet fuel prices have more than doubled since the conflict began. As you can imagine, that makes many flights unprofitable for airlines, which spend as much as 30% of their operating expenses on fuel alone.

High fuel prices are leading airlines in the U.S. and around the world to cancel flights.

How fuel costs are affecting travel

Many airlines have cut flights from their schedules or reduced frequencies in order to scale back on spending.

For example, Reuters reported that Delta Air Lines is cutting capacity by approximately 3.5%. European carriers are also taking a step back, with Lufthansa announcing it's cutting 20,000 short-haul flights this summer.

If jet fuel costs remain at this level, we could see even more flights and routes canceled.

Not to mention, flight cuts mean there will be fewer seats for sale without a corresponding drop in demand. More people chasing fewer seats is a recipe for higher airfare prices.

Airlines for Europe — the association representing many European carriers — says it doesn't expect outright fuel shortages this summer; however, it warns that while supply is currently stable, there are concerns about potential challenges in the fall and winter as costs remain high and market conditions grow more restrictive.

It's important to keep an eye on your flight reservation in case the airline makes any changes to your route.

Know your options in the event your flight is canceled

If a U.S. airline cancels your flight and you decide not to fly, you are entitled by law to a full refund. You're covered by the rules of the U.S. Department of Transportation, which apply to domestic flights, as well as international flights departing or arriving in the U.S.

Of course, if you still want to travel, you'll need to find an alternate flight. Your original airline will work to put you on the next available flight. Sometimes, though, there may not be many reasonable options depending on the routing and the airline. In that case, it's worth asking whether your airline can rebook you on another airline's flight.

If you are flying to or from the U.K. or the European Union and the airline cancels your flight, you may be entitled to compensation via UK261 or EU261 rules. Those rules require airlines to compensate passengers for the inconvenience of a canceled (or severely delayed) flight. High fuel prices don't count as "extraordinary circumstances" under EU261, so airlines will have to reimburse passengers in these cases.

Prepare ahead of time to avoid headaches later

At TPG, we always tell folks to have a backup plan in case things go awry ... whether that's due to weather, labor issues or, in this case, potential fuel shortages.

"Water" your reservations. In other words, periodically check your hotel and flight bookings to make sure nothing has changed. Keep an eye on upcoming flights in case yours is canceled, so you can make alternate plans if needed.

At a minimum, when booking trips:

• Know which other airlines fly the route you are taking and be prepared to rebook yourself.
• Research alternative routes in advance. If you have to call the airline to rebook, it helps to have a specific flight in mind as an alternate.
• Your stash of points and miles can come in handy in situations like this.
• Consider taking a train or renting a car when possible.
• Don't be basic: Avoid booking basic economy tickets, as airlines will likely treat you as a lower priority and offer the least ideal backup plan.

Tips for booking trips right now amid high prices and cancellations

If you haven't booked your summer trips yet, you may be in for a bit of sticker shock. According to data from our partners at Points Path, summer round-trip domestic fares are up a whopping 24% year over year. Award prices are up 22%, so there's no escape from using points and miles, necessarily.

Related: Bust that travel myth: Booking on a Tuesday won't help you save money, but here's what will

Here are some of our best tips for saving on airfare this summer.

• Set Google Flights price alerts. Google Flights will also tell you whether you are getting a good deal. Monitor prices.
• There are new companies that will get you trip credits if the price drops, as long as you don't book basic fares. We like pAiback and Junova. Here is a guide to using those new tools.
• Add flexibility: Can you shift your travel dates by one or two days on either side of the trip? Can you choose a cheaper destination? Flexibility equals saving money.
• Travel on Tuesday, Wednesday or Saturday for the best deals.
• Use an airline vacation package to combine flights, hotels and rental cars for as much as 40% off.

Bottom line

We are now entering the busy summer travel season, and prices are much higher, in large part due to higher jet fuel prices. That means there is a possibility your flight could get canceled, so you should take some steps now to be prepared and know your rights.

Related reading:

• When is the best time to book flights for the cheapest airfare?
• The best airline credit cards
• Which US airline is best? TPG's latest rankings
• Flight delayed or canceled? Here's what to do
• The best credit cards to reach elite status
• What are points and miles worth? TPG's monthly valuations
• How your points and miles are shaping where airlines fly

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.