Air Canada has halted operations on six different routes, both domestically and internationally, due to the surge in fuel prices driven by the conflict in the Middle East.
The airline stated that jet fuel prices have doubled since the beginning of the Iran conflict, impacting the profitability of certain routes and flights that are no longer economically viable. Consequently, schedule adjustments, including frequency reductions, are being implemented in response.
Domestically, Air Canada has suspended the Fort McMurray, Alta., to Vancouver route effective May 28, and the Yellowknife to Toronto route effective Aug. 30. Additionally, service from Salt Lake City to Toronto will be temporarily suspended starting June 30, with plans to resume in 2027.
Flights from Toronto and Montreal to New York’s John F. Kennedy International Airport will also be temporarily suspended from June 1 to Oct. 25. However, Air Canada assured that there will still be 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 been suspended by Air Canada. The affected customers will be contacted with alternative travel options. The airline mentioned that the total impact on its planned capacity is approximately one percent of annual available seat miles.
The announcement by Air Canada coincides with the aviation industry facing an unprecedented fuel crisis due to the prolonged U.S.-Israeli conflict with Iran. As fuel prices have more than doubled, costs are being transferred to consumers.
In a similar response to the fuel crisis, WestJet has announced consolidation of flights on lower-demand routes, reducing capacity by one percent in April and three percent in May. The head of the International Energy Agency warned of possible flight cancellations in Europe if oil supplies continue to be blocked due to the Iran conflict.
John Gradek, an aviation management lecturer at McGill University, emphasized the severity of the crisis in the aviation industry, highlighting the critical dependence on fuel for air travel. Major airlines, including Air Canada, WestJet, Porter Airlines, and Air Transat, have taken measures to cope with rising fuel costs, such as increasing fares or adding surcharges.
Iran’s announcement of the complete opening of the Strait of Hormuz for commercial vessels following a ceasefire agreement between Israel and Lebanon led to a 10 percent drop in oil prices. This development allows oil tankers to resume operations in the Persian Gulf, supplying crude globally.
The situation underscores the fragility of the aviation industry amidst escalating fuel prices and geopolitical tensions, with uncertainties about the future impact on air travel.