Air Canada has halted operations on six routes, both domestic and international, due to the surge in fuel prices driven by the ongoing conflict in the Middle East. The airline stated that jet fuel prices have doubled since the conflict began, impacting the profitability of certain routes and flights. As a result, schedule adjustments are being implemented, including frequency reductions.
Effective May 28, the service between Fort McMurray, Alberta, and Vancouver is suspended domestically, while the Yellowknife to Toronto route is suspended starting August 30. Additionally, the service from Salt Lake City to Toronto will be temporarily suspended from June 30 with plans to resume in 2027.
Air Canada will also temporarily suspend flights from Toronto and Montreal to New York’s John F. Kennedy International Airport starting June 1, intending to resume operations on October 25. Despite the cuts, the airline will continue to offer 34 daily flights between Canada and LaGuardia Airport in New York and Newark Liberty International Airport in New Jersey.
Furthermore, the planned route from Guadalajara, Mexico, to Montreal has also been suspended by Air Canada. The airline assured that affected customers will be provided with alternative travel options. The overall impact on Air Canada’s planned capacity accounts for approximately one percent of annual available seat miles.
The decision by Air Canada comes amid an unprecedented fuel crisis in air travel. The conflict between the U.S. and Iran has extended past six weeks, causing fuel prices to more than double. This increase in costs is now being passed on to consumers. WestJet has also taken measures to consolidate flights on lower-demand routes, reducing capacity in April and May.
According to the International Energy Agency, Europe faces a shortage of jet fuel supplies, with only about six weeks of reserves remaining. This situation could lead to flight cancellations if oil supplies continue to be disrupted due to the ongoing conflict in the Middle East.
John Gradek, an aviation management lecturer at McGill University, emphasized the severity of the crisis in aviation, stating that even if the Strait of Hormuz reopens, it could take years to restore the region’s refining capacity. He highlighted the critical role of fuel in air travel, emphasizing that without an adequate fuel supply, flights cannot operate.
Various airlines, including Air Canada, WestJet, Porter Airlines, and Air Transat, have announced plans to increase fares or add fuel surcharges to mitigate the impact of rising fuel costs. Iran’s recent announcement of open passage for commercial vessels through the Strait of Hormuz following a ceasefire agreement between Israel and Lebanon has caused oil prices to drop significantly, providing some relief to the market.