Air Canada has decided to halt operations on six different routes, including both domestic and cross-border flights, due to the surge in fuel costs driven by the ongoing conflict in the Middle East. The airline stated that the prices of jet fuel have doubled since the onset of the Iran conflict, making certain less profitable routes and flights economically unviable. Consequently, Air Canada is implementing schedule adjustments, including frequency reductions, in response to these challenges.
Effective May 28, Air Canada will suspend the service between Fort McMurray, Alta., and Vancouver domestically. Additionally, the route from Yellowknife to Toronto will be suspended starting August 30. The airline also announced the temporary suspension of service from Salt Lake City to Toronto beginning June 30, with plans to resume in 2027.
Furthermore, flights from Toronto and Montreal to New York’s John F. Kennedy International Airport will be temporarily suspended from June 1, with operations set to resume on October 25. Despite these cuts, Air Canada will continue to offer 34 daily flights between Canada and LaGuardia Airport in New York and Newark Liberty International Airport in New Jersey.
Moreover, the planned route from Guadalajara, Mexico, to Montreal has been put on hold by Air Canada. The airline assured affected customers that they would be contacted 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 a significant fuel crisis in the aviation industry. The prolonged U.S.-Israeli conflict with Iran has led to a more than twofold increase in fuel prices, with these escalating costs beginning to be passed on to consumers. Similarly, WestJet recently announced flight consolidations on lower-demand routes to reduce capacity by one percent in April and three percent in May.
The International Energy Agency has warned of a looming fuel shortage in Europe, with remaining jet fuel supplies estimated to last for around six weeks. If oil supplies continue to be disrupted by the ongoing Iran conflict, flight cancellations could become a reality. Airlines like Air Canada, WestJet, Porter Airlines, and Air Transat have responded by planning fare increases or introducing surcharges to mitigate the impact of rising fuel expenses.
Iran’s foreign affairs minister declared the complete reopening of passage for all commercial vessels through the Strait of Hormuz after a 10-day ceasefire agreement between Israel and Lebanon. However, U.S. President Donald Trump affirmed that the U.S. naval blockade on Iran would persist until a deal is reached with Tehran. Oil prices experienced a 10 percent drop following Iran’s announcement, signaling the potential for oil tankers to resume carrying crude to destinations worldwide.
