> ## Content Index > Fetch the complete content index at: https://www.bushletter.com/llms.txt > Use this file to discover other available public pages before exploring further. # Jet Fuel Doubled in a Fortnight. Melburnians Are Cancelling Europe. - URL: https://www.bushletter.com/melburnians-cancel-europe-fuel-prices-march-2026/ - Published: 2026-03-20T17:33:00.000Z - Updated: 2026-10-10T07:16:20.000Z - Description: How higher jet fuel prices since the Iran conflict are changing Melbourne travellers' plans for Europe. - Author: Bushletter Newsroom - Tags: Travel, consumer, Energy MELBOURNE — Jet fuel prices have doubled in two weeks. Melbourne travel agents are fielding cancellation calls daily. The European summer that many Australians had planned is now priced out of reach. TLDR Jet fuel prices have doubled in two weeks following the Iran conflict, pushing airfares sharply higher. Travel agents say customers are switching to domestic destinations or postponing trips entirely. ## Customer response Travel agents say customers are responding in three ways: cancelling outright, switching to domestic destinations, or postponing until 2027 in the hope prices stabilise. ## Airline response Qantas has added fuel surcharges of up to $400 per international return ticket since the Iran conflict began. Virgin Australia said it had not yet added surcharges to its international codeshare routes but was reviewing its position weekly. Low-cost carriers that operate European routes from Australian hubs have suspended some services entirely. ## Industry impact The Australian Federation of Travel Agents said members were reporting similar patterns across the country, with European cancellations up and domestic bookings rising. ## Fuel market Jet fuel prices are closely tied to crude oil, which has risen above $113 per barrel following attacks on Iranian and Qatari gas facilities. The Strait of Hormuz, through which approximately 20% of global oil passes, remains a flashpoint. Airlines typically hedge fuel costs months in advance, but the speed of recent price increases has outpaced hedging coverage. Analysts expect surcharges to stay high through at least mid-2026. The International Air Transport Association said global airline fuel costs were 40% higher than the same period last year. It warned that some carriers could face financial pressure if prices stayed at current levels through the northern hemisphere summer. ## Consumer options Travel insurance policies purchased before the fuel price spike may cover cancellation costs, depending on the specific terms. Travellers are advised to check their policies carefully before cancelling bookings. Some airlines are offering fee-free rebooking for customers who want to postpone rather than cancel. Qantas said customers could rebook international flights up to 12 months ahead without change fees, though they would need to pay any fare difference. Credit card travel insurance, which many Australians rely on, typically does not cover cancellations due to price increases. It generally covers illness, injury, or events that prevent travel entirely. ## Outlook The situation remains tied to developments in the Persian Gulf. Any de-escalation of the Iran conflict could ease fuel prices and allow airlines to reduce surcharges. Analysts say a return to February price levels would likely take several months even after supply disruptions end. For Melburnians who had planned European trips, the advice from travel agents is consistent: decide quickly whether to proceed, cancel, or postpone. Fare prices are changing daily and refund windows are closing. KEY TAKEAWAYS 01Jet fuel prices have doubled in two weeks following attacks on Gulf energy infrastructure. 02 03 04Qantas has added fuel surcharges of up to $400 per international return ticket. 05Travel agents report customers switching to domestic destinations or postponing trips. SOURCES & CITATIONS 1. [Skyscanner — Melbourne-London fare tracking](https://www.skyscanner.com.au/?ref=bushletter.com) 2. [International Air Transport Association — Fuel cost analysis](https://www.iata.org/en/publications/economics/fuel-monitor/?ref=bushletter.com) FREQUENTLY ASKED QUESTIONS Why have flight prices increased? Jet fuel prices have doubled in two weeks following attacks on energy infrastructure in the Persian Gulf. Airlines have added fuel surcharges of up to $400 per international return ticket. How much have European fares increased? A Melbourne-London return fare that cost $1,687 in February now costs $2,847 on the same route, according to Skyscanner data. Are domestic flights affected? Domestic flights have seen smaller price increases. Tourism Victoria reports an 18% increase in domestic bookings as travellers switch from international destinations. When will prices stabilise? Analysts expect fuel surcharges to stay high through at least mid-2026, depending on developments in the Persian Gulf conflict.