Air Canada has made the decision to halt operations on six different routes, both within the country and across borders, due to the surge in fuel costs driven by the ongoing conflict in the Middle East.
The airline stated on Friday that the prices of jet fuel have doubled since the beginning of the Iran conflict, impacting the profitability of certain routes and flights that are no longer financially viable. As a result, schedule adjustments, including frequency reductions, are being implemented.
Effective May 28, Air Canada has suspended the route between Fort McMurray, Alta., and Vancouver domestically, while the Yellowknife to Toronto route will be suspended starting August 30. Additionally, service from Salt Lake City to Toronto will be temporarily suspended from 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 the intention to resume on October 25. This will impact one flight from Montreal and three from Toronto, though Air Canada will continue to operate 34 daily flights between Canada and LaGuardia Airport in New York and Newark Liberty International Airport in New Jersey.
Lastly, the planned route from Guadalajara, Mexico, to Montreal has also been suspended by Air Canada. The affected customers will be provided with alternative travel options, with the total impact on Air Canada’s planned capacity estimated at approximately one percent of annual available seat miles.
The decision by Air Canada comes amidst an unprecedented fuel crisis in the aviation industry, with fuel prices more than doubling due to the prolonged U.S.-Israeli conflict with Iran. Other airlines like WestJet have also announced capacity reductions on certain routes to mitigate the impact of rising fuel costs.
Concerns about fuel shortages have been raised by the head of the International Energy Agency, warning of potential flight disruptions in Europe if oil supplies continue to be affected by the conflict in the Middle East. Experts suggest that even if the situation improves, it may take years to restore the region’s refining capacity, emphasizing the critical role of fuel in enabling air travel operations.
To counteract the escalating fuel expenses, various airlines, including Air Canada, WestJet, Porter Airlines, and Air Transat, have introduced measures such as fare increases and fuel surcharges. The global aviation industry is closely monitoring developments in the region, especially regarding the reopening of key oil supply routes like the Strait of Hormuz.