Summer Travel Costs Surge as Flights and Package Holidays Become Significantly More Expensive

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Urlaub in diesem Sommer wird spürbar teurer: New data from Germany’s Federal Statistical Office shows a sharp rise in both flight prices and package holiday costs, driven largely by turbulence on the global kerosene market following the Iran war.

Flight Prices Jump Across Nearly All Regions

International airfares rose by an average of 8.5% in the first six months of the year compared with the same period in 2025. Domestic flights saw an even steeper increase, climbing 9.5%.

The strongest price hikes hit routes to Central America, where Economy‑Class tickets cost 12.5% more than a year ago. Flights to European destinations also became significantly more expensive, rising 11.5%.

Other regions saw more moderate increases:

Australia & Asia: +4.9%
North America: +3.7%
South America: +0.3%

One notable exception: Africa. Airfares to the continent fell by 12.0%, bucking the global trend.

Package Holidays Also More Expensive

Holidaymakers booking package trips abroad are also facing higher prices. On average, package holidays rose by 3.0%.

The biggest increases were recorded for:

Egypt: +5.2%
Canary Islands: +4.6%
Balearic Islands: +3.6%
Turkey: +1.3%

Trips to Greece remained almost unchanged compared with last year. Within Germany, package holidays climbed 2.8%.

Iran War Drives Up Kerosene Costs

A key factor behind the price surge is the Iran war and the resulting disruption of global fuel supply routes. The near‑complete blockade of the Strait of Hormuz since late February has made kerosene scarce and triggered fears of supply shortages.

Before the conflict, around 20% of Europe’s kerosene imports passed through this strategic waterway. Airlines responded by:

raising ticket prices,
reducing flight frequencies,
and cancelling routes for safety or economic reasons.

The ripple effects are now clearly visible in summer travel costs.

What This Means for Travellers

Holidaymakers in Austria and across Europe should expect higher prices, fewer flight options, and potentially more volatile booking conditions throughout the summer season. The combination of geopolitical instability and rising fuel costs is likely to keep pressure on the travel market for months to come.