Carriers have tried to stop being forced to pay compensation for flights cancelled by fuel shortages - with limited success
Airlines have been told to prepare for large-scale flight disruption amid fears over jet fuel stockpiles at the height of the summer holidays.
Under new plans, airlines facing fuel shortages will be allowed to cancel flights weeks ahead of time without forfeiting their take-off and landing slots at congested airports.
The Government has developed new contingency measures designed to help carriers plan proactively, reducing the likelihood of chaotic last-minute cancellations for travellers.
Ministers have also requested that Britain's four refineries boost jet fuel production - and are investigating options to import additional supplies from America.
Carriers say they have not yet suffered fuel supply issues - but analysts have cautioned that any further twists in the war in Iran could disrupt deliveries and trigger shortages within weeks.
Britain imports roughly 65 per cent of its jet fuel, with a substantial portion typically arriving from the Middle East.
The closure of the Strait of Hormuz has blocked those supplies from reaching Britain.
The International Energy Agency has warned that Europe could face shortages by June unless alternative sources are secured.
Airport slots can be worth tens of millions of pounds and rarely change hands.
Under current regulations, carriers must use their allocated slots at least 80 per cent of the time during a season, or risk losing them to competitors.
This rule has historically incentivised airlines to operate half-empty aircraft simply to retain their slots.
The Government's new plan allows carriers to temporarily return their unused slots while preserving their rights for the following year.
SUMMER HOLIDAY HAVOC - READ MORE:
The legislation aims to let carriers cancel at least a fortnight in advance in a bid to allow them to anticipate problems rather than react to them.
"We're preparing to give families long-term certainty and avoid unnecessary disruption at the departure gate this summer," said Transport Secretary Heidi Alexander.
"This legislation will give airlines the tools to adjust flights in good time if they need to, which helps protect passengers and businesses."
Chief executive Tim Alderslade said the plan would allow carriers to "avoid unnecessary flying and continue operating as efficiently as possible while protecting connectivity for passengers and trade".
Passengers whose flights are severely delayed or cancelled will still be entitled to support from their airline under existing rules.
This includes rebooking on alternative flights or receiving a refund, plus food, drink and overnight accommodation when required.
Financial compensation is also available if significant disruption occurs.
Airlines have lobbied for fuel shortages to be formally designated as "extraordinary circumstances," which would exempt them from paying out.
However, the European Commission has indicated carriers may avoid being forced to pay if they can prove disruption resulted directly from fuel shortages and that all reasonable steps were taken.
A Wizz Air spokesman said: "Wizz Air acknowledges today’s announcement by the UK Government and would like to reassure customers that its operations remain fully stable and unaffected.
"The airline confirms that it plans to continue to operate its full summer schedule, flying passengers safely and reliably to their destinations across its extensive network.
"Wizz Air is working closely with its partners to ensure seamless operations throughout the peak travel season.
"Customers can book with confidence on Wizz Air's wide selection of routes from more than half a dozen airports across the UK, connecting travellers to popular destinations across Europe and beyond."