Europe’s jet fuel crisis is threatening peak travel season, but consumers are instead looking to holiday closer to home to save money and avoid flight disruptions.

European airlines have taken a hit since the U.S.-Iran war began, as they battle surging fuel costs as well as a jet fuel shortage while the Strait of Hormuz remains blocked. The region typically imports 75% of its jet fuel from the Middle East.

Jet fuel prices increased 103% by the end of March compared to the month prior, according to the International Air Transport Association.

The International Energy Agency chief, Fatih Birol, warned in April that Europe was just weeks away from running out of jet fuel if it was unable to secure alternative export sources.

As fuel costs form around 20 to 40% of an airline’s operating costs, many are now offloading those costs by increasing surcharges and canceling unprofitable routes. German carrier Lufthansa, Scandinavian airline SAS, and Dutch-French airline Air France-KLM are among those cutting flights.

British holidaymakers are now looking at destinations closer to home in southern Europe, including France, Spain, and Greece, and considering alternative travel options, including rail, as the Iran war raises the stakes of taking long-haul flights.

“I think the trend you will see this summer in Europe is people will start to holiday at home,” Ryanair‘s CEO Michael O’ Leary told CNBC’s Ben Boulos at the Norges Bank Investment Management Conference in Oslo in April.

 “I think people will increasingly decide, let’s book Portugal, Spain, Italy, and let’s avoid the Middle East or going long haul… we’re seeing people switch away from going to the Middle East or going long haul, towards going short haul,” O’Leary added.

Eurostar tickets to France purchased by U.K. residents soared 42% in April, compared with a month prior, and were up 25% year-on-year, according to data travel booking platform TrainPal shared with CNBC. Just over half of the tickets Britons booked were for travel beyond 30 days of purchase.

The data also showed a boost in plans to travel around Europe via rail as ticket sales by Brits for trains in France soared 98% from the previous year, up 61% for Spain, and 92% for Italy.

“It’s no surprise that the discourse around jet fuel shortages is prompting a rise in Eurostar bookings and train travel across Europe for U.K. travelers,” Alvaro Ungurean, Trainpal’s commercial director in Europe, said.

“Thankfully, train travel still makes mainland Europe very much accessible for U.K. travelers this summer, and we actively encourage those who are concerned about cancelled flights or international disruption to explore rail travel as an alternative option,” he added.

Airlines face strong competition from rail this summer, especially as Europe’s trains have a history of consistently transporting more passengers annually than aviation, Allianz Trade noted in research published in April.

The research warned that Europe is one of the “most structurally exposed regions” to the jet fuel crisis as it produces only around 50% of its kerosene — a type of jet fuel — domestically.

Meanwhile, between 2014 and 2024, railways transported 81.2 billion passengers, compared with 8.9 billion passengers transported by air companies, according to Allianz.

“The big game changer currently is higher flight tickets and also the price of gasoline being quite expensive,” Allianz Trade’s Head of Corporate Research Ano Kuhanathan said.

He noted that U.K. travelers typically drive to France and other nearby European destinations when the price of diesel is quite low, and cheaper than the train.

“But right now, with high diesel and gasoline prices, I think there might also be a bit more interest in traveling by train,” he said.

He added that potential flight cancelations are also adding to travelers’ decisions to choose rail.

“If you decide to travel abroad and, for some reason, your return flight is canceled, you’re on your own, you’re stuck in most likely a foreign country, and you need to find accommodation. So clearly, I think all of this is weighing on people’s thinking.”

Tourism firm TUI Group reported a strong trend of consumers booking last-minute vacations to western Mediterranean countries in particular this year, with Spain, the Balearic and Canary Islands, and Greece set to be the most popular destinations this summer.

Meanwhile, booking trackers point to a 32% year-on-year gain for Spain, and 20% for Italy, Greece, and Portugal, according to Allianz Group.

Kuhanathan explained that U.K. travelers have historically favoured southern Europe, and the Iran war will “reinforce” this pattern. “What is clearly going to take a bit of a toll is the long-haul flights to Asia, maybe Latin America.”

Stephen Furlong, senior transport and logistics analyst at Davies, previously told CNBC that airlines are responding to rising fuel prices by “reducing frequencies and higher frequency routes, because some routes don’t make sense at these higher oil prices.”

Furlong said customers may vacation closer to home as uncertainty continues.

“Possibly we’d see in the near term more demand for increased leisure trips closer to home, like Spain, Portugal, and France, as opposed to the eastern Mediterranean,” Furlong said.

As global airfare prices increase, families in the U.K. and Europe are thinking about finances before committing to a holiday abroad.

Allianz’s Kuhanathan said “economic uncertainty,” fears around the job market, and AI are all contributing to travelers looking to be more economical this year.

Some Brits may opt for staycations or not travel at all. “There will be a bit more domestic tourism. It has already been a historical trend, and it might get reinforced, definitely in the current context,” Kuhanathan said.

Earlier this month, Airbnb searches for U.K. stays were up 15% year-on-year, according to data the vacation rental platform shared with CNBC.

Rural locations, including Northumberland, Pembrokeshire, Herefordshire, Gwynedd, and Derbyshire Dales, ranked among the top 20 most booked U.K. destinations for the May Bank Holidays. 

Lisa Marçais, general manager for Northern Europe and EMEA at Airbnb, said there’s a clear uptick in demand for U.K. getaways during the spring and summer seasons, which are generally more accessible and offer better value for money.

“If you are not very confident about your economic future, your holidays are more and more expensive, maybe you will decide to save money for rainy days instead of vacationing in southern Spain,” Kuhanathan added.

When Spirit Airlines shut down before dawn on May 2, work for pilot Steve Giordano was just beginning.

Giordano, managing partner of the Nomadic Aviation Group, told CNBC he organized a massive repossession of more than 20 Spirit planes that lessors wanted returned.

In just over a week, he said he and his team ferried 23 Spirit planes from airports around the country to the Arizona desert. Just hours earlier, those bright yellow Airbus jets had been flying Spirit customers.

Giordano, who runs Nomadic with co-founder Bob Allen, was starting to hear in the late morning on May 1 that his team would be at work soon. “We finally got the trigger pulled to start moving crews at 6 p.m.” on May 1, he said. Spirit shut down at 3 a.m. ET the next morning.

So Nomadic and hired pilots — some of whom were previously flying for Spirit — began ferrying the aircraft out West with no customers on board to special airports outside of Phoenix and Tuscon, Arizona, where they’ll be stored for now.

Retired or otherwise unused aircraft are often parked out in the desert because the climate reduces the risk of corrosion or other damage. Airlines parked thousands of them there when travel collapsed in the Covid pandemic.

Nomadic organizes everything from getting fuel for the planes it’s flying to ensuring the aircraft have necessary inspections and crews for the flights.

Unlike with an airline that has a large staff of dispatchers, mechanics and pilots, “when you’re out on a mission like this, there’s a lot more responsibility as far as getting the mission accomplished,” Giordano told CNBC. “To be honest, the easy part of this is the flying part of it.”

Nomadic is a specialist in aviation. The company typically transports aircraft to new customers around the world. Rarely, the company’s work also means repossessing planes for leasing firms or other owners when an airline liquidates.

“It’s certainly the least frequent type of operation that we do,” Giordano said.

Major airline shutdowns in the U.S. are rare, and Spirit’s collapse was the biggest in decades. Earlier this month, Spirit began the long process of dismantling the discount carrier in bankruptcy court.

Part of that liquidation process involves returning planes to the lessors, which is where Nomadic Aviation comes in. According to a court filing, Spirit had 114 Airbus A320 planes, and 66 of them were leased.

Giordano said he was so busy before one Spirit repossession flight that he forgot to eat.

“By the time I got to the airplane, I’m like, ‘Oh no, I’m really hungry and there’s not going to be any options until we get to Arizona,'” Giordano said. “One of the mechanics said, ‘Hey, all the galley carts are full.’ So it had all the normal Spirit snacks. I think I had some Milano cookies. … I had a couple snack boxes with cheese. It was basically free and unlimited.”

Not everything was free for the taking, like Wi-Fi.

“I had to pay for it, but it worked,” he said of the Spirit plane he ferried from Philadelphia International Airport to Pinal County Airport in Marana, Arizona.

It isn’t clear where each plane that was in Spirit’s fleet will end up. The carrier had already reduced its fleet in recent years and cut routes to save cash.

Engines that weren’t part of a major Pratt & Whitney recall, which grounded Spirit’s jets and hurt the airline years before it even filed for bankruptcy, could be in high demand.

A Pratt & Whitney PW1127G engine was going for about $14.5 million in January, up from $11.3 million three years earlier, according to aviation consulting firm IBA Group.

Supply chain shortfalls since Covid have lifted values of secondhand parts, none more valuable than engines, though there are hundreds of components that make up an aircraft and can be sold.

“The engines that were operational will be very welcomed,” said Stuart Hatcher, IBA’s chief economist. “The turnaround time at the shops is still probably close to double what it should be.”

Giordano who lives not far from the Philadelphia airport, said it was “surreal” driving to work to fly the last Spirit plane out of that airport.

“This is the last time this will ever happen, and I happen to be flying it,” he said.