Summer travel plans have been plunged into chaos after airlines cut more than two million seats from May schedules in the past two weeks amid growing fears of a fuel shortage.

Airlines have reduced flight schedules in recent weeks in anticipation that the US- Iran conflict will continue and the fuel crisis will deepen.

The total number of seats available on flights across all carriers in May dropped from 132 million in mid April to 130 million in late April, according to analytics company Cirium.

UK airlines say they are not yet facing jet fuel shortages but the Government has already introduced emergency measures that allow carriers to cancel flights and alter their schedules as a precaution.

The anticipated shortages could trigger major disruption to your holiday or completely ruin plans if flights are cancelled en masse.

Lufthansa has made the most seat cancellations, axing 20,000 flights between May and October. Meanwhile, Ryanair boss Michael O'Leary has warned the airline is now 'desperately' searching for flights to cancel and is expected to do so within weeks.

So what are your rights if your upcoming family trip has been left in tatters by cancelled flights – and when are you not protected? Money Mail answers all your questions...

I’m set to travel for my summer holiday soon – what are my rights if my flight is cancelled?

JUST a few weeks ago, it was only those who had planned to travel to the Middle East this summer that were bracing for flight cancellations.

But now a worldwide travel crisis could unravel over the summer months as the war disrupts jet fuel supplies.

The average global jet fuel price increased for the first time in a month last week to $181 (£134) per barrel, according to new International Air Transport Association (IATA) data.

This 1 per cent week-on-week rise followed three consecutive weeks of decline after a peak of $209 (£155) at the start of April - up from $99 (£73) at the end of February. There are fears prices could soar higher yet, forcing airlines to act. 

If your flight is cancelled, you are entitled to an alternative flight at the earliest opportunity or at a later date if you prefer. Alternatively, you can ask for a refund, according to regulator the Civil Aviation Authority (CAA).

This applies if a flight is cancelled under normal circumstances but the regulator has confirmed it also applies if a flight is cancelled due to the lack of fuel supply.

If your airline can’t reroute you via a suitable alternative flight, you can ask to be booked on a flight with a competitor. If it doesn’t do this then you should call the airline to ask if you can book the alternative flight yourself and seek compensation separately. 

These are rights afforded to travellers from the UK under a regulation called the EU Reg 261/2004, to which the UK still abides.

You are covered if you’re departing from any UK airport and your flight has been impacted, regardless of whether you are flying with a UK, EU or other international airline.

If your flight is cancelled and you no longer want to travel, you can ask for a refund. You should receive it within seven days.

My airline has merged my flight with another one - can I claim compensation?

Airlines have been handed a key power by the Government that could see your flight to your summer destination merged with one hours earlier or later in the day.

Carriers can do this under normal circumstances, but they may be penalised the following year by losing the right to operate flights in these time slots.

However, the UK Government has now given the green light for operators to cancel flights in time slots without being penalised.

It means you may be grouped with passengers from different flights that are not fully booked on one plane as part of plans to save fuel.

This could see passengers moved from the service they originally booked to a similar one at a different time of day, for example, if there are multiple planes taking off to that destination on the same day.

The Government says that this is to stop stressful last-minute cancellations.

Rob Bishton, chief executive of the UK Civil Aviation Authority: ‘Passengers in the UK are well protected by some of the strongest rights in the world, offering reassurance if disruption does occur.

‘Airlines have a duty to look after their passengers when they face disruption, and should offer a choice between a refund or alternative travel arrangements, including with another airline, if a flight is cancelled. Relaxing the rules around slots at airports will allow airlines more flexibility and so we expect them to give passengers as much notice as possible of cancellations during this period.’

Usually, an airline can cancel or significantly move the timing of a flight if it is more than 14 days away. Any less and the passenger is due compensation. The amount would depend on when a flight was cancelled, the distance of the flight and the timings of the rescheduled flight.

But it’s not clear whether compensation – in addition to the refund - will be due if your flight is cancelled or moved due to the fuel shortages.

Airlines typically don’t have to pay out compensation if the delay or cancellation is down to ‘extraordinary circumstances’.

This phrase covers events like political or civil unrest, a security alert, a strike by air traffic control or acts of terrorism.

While the cancellations and changes are not directly due to the unrest, these extraordinary circumstances have sparked the shortages.

Airlines have petitioned for fuel supply shortage to be seen as an ‘extraordinary circumstance’ to avoid stumping up compensation.

This request has not been granted in the UK. However, the European Commission has implied airlines may be able to get out of paying compensation if they can prove the disruptions was directly due to the fuel shortage.

This means passengers may be out of pocket as they will be left with no compensation.

Consumer group Which? has lambasted the Government’s rule change. Rory Boland, editor of Which? Travel, said: ‘It's not fair for the rules to now be bent in favour of airlines and potentially leave passengers holding the bill.

'Many passengers will understand that disruptions can occur and may be happy to travel a few hours or a day later, but for those on short trips or connecting flights it could mean the trip is no longer worthwhile.

'Before any changes are made, passengers need cast-iron assurances that their rights will not be weakened and that airlines cannot use reform as cover to shift the cost of disruption on to travellers.'

Will I be able to get a refund for my hotel booking?

Check the terms of your booking. Many hotels offer free cancellations, especially if it is some days or weeks before your reservation.

If your booking does not offer free cancellations, give the hotel a call to see if they can offer you some flexibility, for example, to change the date of your stay.

They may well be sympathetic to your situation and be willing to allow you to change your booking.

Unfortunately, your travel insurance may not reimburse you if the hotel refuses to change your booking or to refund you should you need to cancel. Most standard policies do not cover trip cancellations due to acts of war, but check your policy wording carefully.

It all depends on if cancellations due to fuel shortages are seen as an ‘act of war’ or there is another exemption that prevents you from claiming.

I’m trying to get home from a trip but my flight has been cancelled – will I get a refund or compensation?

The level of protection you are afforded depends on which airline you are set to fly to the UK with. If it is an EU or UK airline, such as British Airways, you will be covered under EU Reg 261/2004 rules.

Your airline must get you home and look after you in the meantime by paying for meals and accommodation.

If it cannot offer you this care, you must pay expenses upfront, keep the receipts and hope that you’ll be reimbursed by your airline later.

You should make sure your expenses are reasonable, or your airline may reject your claim. Travel and customer service expert Jane Hawkes says there are no strict definitions of ‘reasonable’. ‘Generally, these costs mean a mid-range hotel rather than luxury accommodation, typically close to the airport and at a standard local room rate,’ she says.

‘If disruption is widespread and prices surge, higher rates can still be reasonable but keep clear evidence. For meals, sensible spending appropriate to the time of day is covered and airlines recognise that airport prices are higher.

‘Fine dining and alcohol are not accepted as reasonable costs. Transport between the airport and hotel should be reimbursed, with public transport preferred where practical, though taxis are reasonable late at night or where no alternative exists.

‘Necessary communication costs, such as phone calls or internet access to rearrange travel, should also be covered.’

Alternatively, you can ask for a refund for your return leg.

However, Tim Riley, who is the chair of the UK Travel Insurance Association (UKTIA) and runs travel insurer True Traveller, stresses that asking for a refund is the last thing you should do.

‘Accepting a refund effectively ends the airline’s duty of care, leaving the traveller responsible for arranging and paying for new flights themselves, which are likely to be significantly more expensive,’ he says.

‘Travel insurance will not cover the difference in cost between a refunded ticket and a new booking.’

You may not be rerouted as soon as you’d like due to the industry wide disruption.

If your airline can’t reorganise your flights, you can request that it books you on a flight with a different airline at the earliest opportunity, or ask if you can book an alternative flight and be reimbursed later.

But be aware, these rules do not apply if you are set to arrive in the UK with a non-UK or non-EU airline.

For example, if you booked your return flights with Etihad Airways or American Airlines, you won’t be covered under these regulations. Nonetheless, the CAA still expects airlines to minimise the impact to its passengers.

This doesn’t mean that you aren’t entitled to an alternative flight or a refund, just that you’ll need to speak with your airline to check your rights.

Can I get a refund for my holiday accommodation via a package provider?

If you booked a package holiday with flights and accommodation and it is cancelled or changed significantly, you must either be offered an alternative holiday at a later date or a refund of the full amount.

Your travel company should contact you if you are in this situation.

If you are stuck abroad on a package holiday, the airline should cover the cost of your accommodation until you can return home – so long as it is a UK or EU airline.

Can I claim on my travel insurance?

Travel insurance is usually the safety net travellers rely on when they can’t get any help from an airline or they need to cancel a hotel booking.

If the reason for the cancellation is outside of an airline’s control, your travel insurer can normally reimburse you for the flight as well as the holiday accommodation and hire car costs.

However, due to the conflict in the Middle East, policyholders may not be able to cancel their trip and claim on their travel insurance This is because standard travel insurance policies typically exclude war, hostile acts, civil war and military action.

It is unclear whether this covers fuel shortages, which have been triggered by the ongoing war. It all depends on what your policy wording says.

Some insurers will offer cover, though, so check the small print. For example, insurer Staysure’s signature policy or travel disruption extension add on will cover cancellations due to an outbreak of war.

The travel disruption add on covers a trip cancellation if the FCDO advises against ‘all’ or ‘all but essential’ travel to a destination.

If your policy covers a 'catastrophe', you may be protected.

Anna-Marie Duthie, travel insurance expert at financial product experts Defaqto, says: ‘Look for wording suggesting they will cover disruptions due to a ‘catastrophe’ - defined as including ‘civil commotion and/or civil unrest assuming the proportions of or amounting to an uprising.’

You may also be covered if your policy allows you to claim if the advice from the FCDO about travel to the region changed with 31 days of travel.

If you travel against the advice of the FCDO, your travel insurance may be invalidated. For example, the body has advised against all but essential travel to the UAE.

The Foreign Office says it is up to you to decide if your travel is ‘essential’. It provides little explanation on what this means but it is generally understood that urgent business commitments or unavoidable family events such as a funeral will be seen as ‘essential’.

Am I covered for indirect expenses I clock up?

Again, this depends on whether travel insurers class cancellations due to fuel shortages as an act of war or there is another exemption that prevents you from claiming. Ask your insurer.

If so, neither travel insurers nor airlines need to pay for what is known as consequential losses.

That means that if you’ve paid for car rental or airport car parking that you can’t redeem, or for pet sitting while you’re away, you won’t be reimbursed.

I’m set to travel soon but now I feel uncomfortable – can I cancel and rebook my flight for a different time?

Many holidaymakers may still feel wary about travelling to certain destinations at the moment, even if the conflict subsides.

But this is unlikely to be a valid reason to claim a refund on an upcoming trip.

If your flight has already been cancelled due to the conflict, you can choose to get a refund instead. This should arrive within seven days.

However, if the flight is still going ahead, it’s unlikely you’ll be reimbursed if you cancel it. Ms Hawkes says that if the trip is still operating and you choose to cancel for personal reasons, you may not have a legal right to a refund.

She says: ‘If flights are operating and there is no change in official advice, your trip may still go ahead as planned.

‘Disinclination to travel is not a valid reason for a refund. But try to contact your provider to ask about flexibility, date changes or waivers, as many companies offer goodwill options during periods of uncertainty. Avoid cancelling immediately without understanding your rights,’ says Ms Hawkes.

What if I don’t get what I’m owed?

If your airline rejects your claim, you can try to use alternative dispute resolution (ADR) to resolve the matter. In the UK, two approved ADR schemes cover aviation: AviationADR and the Centre for Effective Dispute Resolution (CEDR). There’s a list of the airlines signed up to each scheme on the CAA website (caa.co.uk).

If your airline is not signed up to either – and this includes many Middle East airlines such as Qatar and Etihad – then the CAA’s own team can consider your complaint.

Have your travel plans been disrupted? Email moneymail@dailymail.co.uk

Additional reporting by Rosie Murray-West