Fuel Spikes & Airline Woes

Gosh, it has been a whirlwind sort of year for travelers. Between the headlines coming out of the Middle East and the painful prices at the gas pump, I have been getting a lot of questions lately from travelers who feel like they are standing on shaky ground with regards to booking trips.

If you have been watching the news, you have likely seen that the industry is hitting a major wall. The jet fuel crisis isn’t just a headline – it is a primary driver of the flight industry instability we are seeing across the board. When fuel costs spike like this, airlines are forced into survival mode, and unfortunately, it is the travelers who feel the squeeze.

Here is a look at what is actually happening on the ground:

• Spirit Airlines is gone: The recent bankruptcy of Spirit is a stark reminder that even established carriers aren’t immune to these rising costs and debt loads.
• Capacity Cuts: Many airlines are aggressively consolidating flights to ensure every plane is full, which means fewer options and more unexpected cancellations for the routes that aren’t profitable enough to 
• Service Reductions: We are seeing airlines cut back on secondary airports, potentially leaving travelers with longer drives or fewer connection options.
• Locational Shortages: Keep a close eye on hubs in Europe and Southeast Asia, specifically. Recent reports indicate that regional fuel shortages in these areas are causing localized groundings and delays, even for financially stable airlines.

For those considering whether to book a trip, all of this creates uncertainty and stagnation. How do you plan a trip when the airline you booked might look different—or not exist at all—by the time you head to the airport?

Bankruptcy vs Financial Default

In light of the recent news about Spirit Airlines and the general instability caused by the jet fuel crisis, it is important to know that bankruptcy and financial default are not the same thing.

• Bankruptcy: This is most often a Chapter 11 filing, where the airline reorganizes its debt while the planes keep flying. Typically, your service is still being provided, so travel insurance does not pay out for bankruptcy news alone.
• Financial Default: This is a complete cessation of services, in which the airline stops operating entirely due to financial issues. In this case, your service is affected and will trigger your travel insurance coverage after a defined number of hours (typically 24-48).

Example: Spirit Airlines completely stopped flying on May 2nd, a complete cessation of services. For travelers who purchased a plan with coverage for this event, they can file a claim.

Other airlines stepped up and tried to keep replacement fares low to help travelers get home. Approximately 17,000 direct and indirect employees lost their jobs as a result of the collapse.

The Fine Print: 3 Terms You Need to Know

Here are some additional terms you need to know with regard to covering your airfare this summer:

• The 14-Day Purchase Window: To get your money back when an airline ceases service, you must purchase your travel insurance within 10 to 14 days of making your very first trip payment.  
• The Waiting Period: Most policies require a 14-day waiting period after you buy the policy and before your flight. This means if you buy a policy today and the airline defaults tomorrow, you aren’t covered. This is why buying early (before the headlines give it away) is the only way to stay safe.  
• The Covered Supplier List: Insurance companies maintain lists of at-risk carriers they won’t insure. If your airline isn’t on the approved list at the exact time you buy your policy, default coverage won’t apply.

Pro tip: There is no single universal list for the entire insurance industry. Each insurance provider (e.g., Allianz, Travelex, AIG Travel Guard) maintains its own. Before you buy, check the provider’s website to see if the airline is listed. Or, you can contact me! Just reply to this email.

Should You Book Now or Wait?

Using the latest industry data, we can see how the fuel crisis is changing the landscape. Whether the crisis will continue, however, and how long it will take to get prices back on track is anyone’s guess.  

Some analysts believe we have reached the peak of the fuel crisis, while others warn that regional instability could cause another spike as we head into the summer.  

My Advice:

1. If you find a fare you can live with, book it and use a credit card. Under the Fair Credit Billing Act, you have the right to dispute charges if the airline fails to provide the service. It is your first line of defense alongside your insurance policy.
2. Check the covered supplier’s list before you buy a travel insurance policy to verify that your airline is in good standing with insurance companies’ lists of covered providers.
3. Buy travel insurance immediately: To protect yourself against an airline service issue, you must buy your policy within 10 to 14 days of your first trip payment. This satisfies the purchase window required for financial default coverage and ensures you are past the waiting period wall before any trouble starts.

Remember: While a credit dispute can get your ticket money back, it won’t reimburse you for non-refundable costs you missed because the flight didn’t take off. That gap is exactly why you need a comprehensive travel insurance policy.

Work Around the Fuel Crisis with a Free Stopover

Now is the perfect time to get strategic with your travel dollars, and there’s a fun way to do this. One of the best ways to maximize every travel dollar is to take advantage of airline stopover programs.

Instead of just sitting in a terminal for hours and hours, these programs let you stay for several days for no additional airfare. You get two destinations for the price of one fuel surcharge, and there are often additional discounts on hotels and tours!. 

Here are some examples:

• Icelandair (The Original): You can stop in Reykjavik for up to seven days on your way to or from Europe. It is a fantastic way to see the northern lights or soak in the Blue Lagoon without having to buy a separate ticket.
• TAP Air Portugal: This program allows for a stay of up to ten days in Lisbon or Porto. They even offer a network of local partners that provide discounts on hotels and tours for stopover passengers.
• Turkish Airlines: This is a hidden gem for travelers headed to Asia or Africa. If your layover in Istanbul is over 20 hours, they often provide a free hotel stay in a 4-star or 5-star hotel, depending on your cabin class.
• Copa Airlines: For those headed to South America, you can stop in Panama City for up to seven days. It is a great way to see the Panama Canal between your main flights.

It’s the ultimate savvy way to dilute the high cost of travel in 2026 and turn a long journey into an adventure.

Use These Tools to Find Stopover Flights

1. The Google Flights Multi-City Trick

Google Flights is excellent if you know which airlines offer the programs. Instead of searching for a Round Trip, select Multi-City.

• How to do it: Enter your first leg (e.g., JFK to Reykjavik) and your second leg (Reykjavik to London) for a few days later.
• The Benefit: If you use a stopover-friendly airline like Icelandair, the total price will often match the standard round-trip fare, confirming the stopover is essentially free.

2. Specialized Stopover Search Tools
There are a few newer platforms designed specifically to find these “two-for-one” opportunities:

• Airwander (formerly AirStop): This tool lets you search for flights with long layovers or multi-day stopovers at no extra cost.
• SkipLagged: While famous for hidden-city ticketing (which I generally advise against due to the risks), it is good at showing where long connections could be turned into stopovers.

3. Direct Airline Stopover Portals
Because of the current fuel crisis and the need for airlines to boost tourism in their home countries, many carriers have built their own dedicated search tools.

• Icelandair & TAP Air Portugal: Both have a specific “Stopover” toggle on their homepage search bars. Using these is the “safest” way to ensure the fare is calculated correctly and that you don’t accidentally book two separate, expensive one-way tickets.

Luggage Logistics

Before you head out to explore your bonus city, you need to know what to do with your luggage.

• Short Layovers: Usually, bags are checked through to your final destination.
• Multi-Day Stopovers: You will almost always need to claim your bags and re-check them when you continue your trip.

Always confirm the baggage status at the check-in counter. If you have a stopover longer than 24 hours, plan to take your bags with you to your hotel.