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Airlines have been told to prepare for widespread disruption during the summer holiday season amid growing concerns over jet fuel shortages that could affect flights across the UK and Europe.

The Government has drawn up contingency plans allowing carriers to cancel flights weeks in advance without losing valuable take off and landing slots at busy airports. The move is designed to prevent last minute chaos for travellers if fuel supplies come under pressure.

Ministers have also urged Britain's refineries to increase jet fuel production and are exploring options to import additional supplies from the United States. The measures come as analysts warn that instability linked to tensions in Iran could disrupt global fuel deliveries.

The situation has been made more urgent by disruption to shipments through the Strait of Hormuz, a key route for fuel imports. The UK relies on imports for around 65% of its jet fuel, much of which typically comes from the Middle East.

The International Energy Agency has warned that Europe could face shortages as early as June if alternative supplies are not secured.

Under current rules, airlines must use airport slots at least 80 per cent of the time or risk losing them, a system that has sometimes led to flights operating with very low passenger numbers. The new policy will allow airlines to temporarily hand back unused slots while keeping their rights for future seasons.

Heidi Alexander said the changes would help minimise disruption. "We're preparing to give families long term certainty and avoid unnecessary disruption at the departure gate this summer," she said.

Airlines UK, the industry body, welcomed the move. Chief executive Tim Alderslade said it would allow carriers to "avoid unnecessary flying and continue operating as efficiently as possible while protecting connectivity for passengers and trade".

Passengers affected by cancellations or delays will still be entitled to assistance, including rebooking, refunds, and support such as meals and accommodation where necessary. Compensation may also apply in cases of significant disruption.

Airlines have argued that fuel shortages should be treated as extraordinary circumstances, which would exempt them from compensation payments. That request has not been approved in the UK, although European regulators have suggested some flexibility if carriers can prove disruption was unavoidable.

A spokesperson for Wizz Air said its operations remain stable and that it plans to run its full summer schedule, adding that customers can continue to book with confidence.

Despite reassurances from airlines, the prospect of fuel supply issues during peak travel months has raised fears of delays and cancellations, with millions of holidaymakers potentially affected if shortages materialise.