Air Canada has halted operations on six routes, both domestic and cross-border, due to the surge in fuel prices driven by the conflict in the Middle East. The airline stated that the doubling of jet fuel prices since the onset of the Iran conflict has made certain less profitable routes and flights economically unfeasible, leading to schedule adjustments, including frequency reductions.
Effective May 28, the Fort McMurray, Alta., to Vancouver route is suspended domestically, while the Yellowknife to Toronto route will be suspended starting August 30. Air Canada also announced the temporary suspension of service from Salt Lake City to Toronto, with plans to resume in 2027. Additionally, flights from Toronto and Montreal to New York’s John F. Kennedy International Airport will be temporarily suspended starting June 1, set to resume on October 25.
Furthermore, Air Canada disclosed the suspension of the planned route from Guadalajara, Mexico, to Montreal. The airline assured affected customers that alternate travel options would be provided. The total impact on Air Canada’s planned capacity amounts to approximately one percent of annual available seat miles.
The decision by Air Canada comes amidst an unprecedented fuel crisis in air travel. With the U.S.-Israeli conflict against Iran surpassing six weeks, fuel prices have more than doubled, prompting cost increases passed on to consumers. WestJet has also announced flight consolidations on lower-demand routes, reducing capacity by one percent in April and three percent in May.
The International Energy Agency has warned of a looming jet fuel supply shortage in Europe, with only about six weeks of remaining supplies due to potential oil blockades from the Iran war. Industry experts caution that flight cancellations could become a reality if the situation persists. Aviation experts emphasize the severity of the crisis, highlighting the potential long-term impacts on refining capacity in the region even if the Strait of Hormuz reopens.
Major airlines, including Air Canada, WestJet, Porter Airlines, and Air Transat, have unveiled plans to raise fares or add fuel surcharges to mitigate escalating fuel costs. While Iran’s announcement of the opening of the Strait of Hormuz led to a 10% drop in oil prices, challenges remain as the naval blockade by the U.S. on Iran is set to endure until a diplomatic resolution is achieved.
