European tour operators face fuel cost risks for 2027

Major European tour operators and airlines are facing uncertainty regarding fuel costs for the 2027 travel season. While holidays for 2027 are already on sale, a significant portion of the airfare costs remains unhedged and subject to oil market fluctuations.

Data shows a notable disparity between winter and summer coverage. TUI has secured 63% of its fuel needs for the winter of 2026/27, but only 39% for the following summer. Similarly, easyJet has covered 62% of its requirements through March 2027, but that figure drops to 37% for the April-September 2027 period.

Jet2 reports a higher level of security, having hedged 90% of its fuel needs until its fiscal year ends on March 31, 2027. However, the specific coverage for the summer of 2027 remains undisclosed. These hedging strategies are used to fix or limit future prices through financial mechanisms rather than physical storage, providing companies with greater certainty in capacity and price planning.