UK boutique tour operator Untravelled Paths has launched a Flight Cancellation Protection policy on all trips from May 6, in response to mounting airline failures and surging jet fuel prices linked to the Middle East war, according to the company website.
Jet fuel prices have surged from $74 to $150 per barrel since the outbreak of the conflict earlier this year, placing European airlines under unprecedented financial pressure, the company said. The collapse of UK-based Ascend Airways in late April and US carrier Spirit Airlines on May 2 has highlighted how quickly the situation can change, particularly for budget operators.
The policy starts at £49 ($65) per person and offers a full refund or a free postponement to any available date within 24 months for flights cancelled more than 14 days before departure. For cancellations occurring between 48 hours and 14 days before departure, the window in which airlines have generally been giving notice during the current crisis, a free postponement is available. Refunds are processed within 20 working days of receiving valid documentation.
Pricing is tiered by trip value: £49 ($65) per person for trips up to £1,000 ($1,330), £89 ($118) for trips between £1,001 and £2,500 ($3,325), £129 ($171) for trips between £2,501 and £4,000 ($5,320), and £175 ($233) per person for trips above £4,001. Cover must be added at the time of booking or within seven days of the original booking date and cannot be purchased once a cancellation notice has already been issued by an airline.
Untravelled Paths also urged customers to book flights by credit card and to take out independent travel insurance that includes Scheduled Airline Failure Insurance (SAFI), providing an additional layer of protection should their chosen airline encounter financial difficulties.
The launch comes after Ryanair chief executive Michael O’Leary publicly named specific European carriers as being at risk of collapse by the autumn if fuel prices remain at current levels, the company said.
The European Central Bank warned this week that Europe could begin running out of jet fuel and kerosene reserves by the end of May, potentially triggering material restrictions on industrial activity comparable to those seen during the COVID-19 pandemic. ECB Executive Board member Piero Cipollone said in a Milan speech on May 6 that the short-term effect of the war on global oil supply was larger than the three previous energy crises in 1973, 1979 and 2022 combined.
The policy reflects a wider shift in the tourism market as travellers increasingly demand flexibility, refund transparency and airline insolvency cover ahead of low ticket pricing. Standard travel insurance plans do not automatically include airline failure protection, leaving independent travellers carrying the greatest financial risk if carriers suspend operations before departure dates.
Tour operators across the United Kingdom and Europe are redesigning business models around flexibility and emergency customer support as confidence in budget carriers weakens. Tourism agencies and travel advisors are increasingly recommending stronger booking protection and enhanced insurance policies that include airline insolvency coverage.
Untravelled Paths is a specialist travel company offering crafted journeys to remote and unusual destinations.