Air Canada cuts 6 routes “no longer economically feasible” amid rising fuel costs

Air Canada has now cut six routes – both within Canada and between Canada and the U.S. – because rising fuel costs tied to the Middle East conflict have made some flights too expensive to operate.

"Jet fuel prices have doubled since the start of the Iran conflict, affecting some lower profitability routes and flights which now are no longer economically feasible," the airline said in a statement shared with CBC News on Friday (April 17).

Among the changes:

• Flights between Fort McMurray and Vancouver will stop on May 28.
• Service from Yellowknife to Toronto will end on Aug. 30.
• Salt Lake City to Toronto flights will pause starting June 30, with a return planned for 2027.
• As previously reported, flights from Toronto and Montreal to New York's JFK will be suspended temporarily starting June 1, with plans to resume Oct. 25. (Air Canada will still offer 34 daily flights between Canada and LaGuardia Airport in New York and Newark Liberty International Airport in New Jersey).
• A planned route from Guadalajara to Montreal has been cancelled.

Air Canada says affected passengers will be rebooked on alternative flights. Overall, the cuts represent about one per cent of annual available seat miles. 

READ MORE: Airlines worldwide scale back flights as fuel costs surge

The broader issue is a global jet fuel shortage caused by the ongoing conflict, which has driven up prices and could lead to more flight reductions across the industry.

WestJet said earlier this month that it plans to combine flights on some routes with lower demand, cutting its overall capacity by one per cent in April and three per cent in May.

Meanwhile, the head of the International Energy Agency has warned that Europe may have only about six weeks of jet fuel left, raising the possibility of flight disruptions if the Iran conflict continues to block oil supplies.

Air Canada, Air Canada Vacations, WestJet (inclusive of Sunwing), Porter Airlines, Air Transat, and Flair Airlines have all recently signalled that they will raise ticket prices or introduce fuel surcharges as a way to cope with escalating fuel costs.

At the same time, Canadian Prime Minister Mark Carney has announced a temporary suspension of the federal excise tax on gasoline and diesel, which will remove a four cent per litre tax on aviation fuel.

But airlines say that won’t be enough to eliminate the surcharges.

The tax relief represents “less than five per cent of the amount by which the jet fuel cost increased on domestic flights since the beginning of the Middle East crisis,” WestJet said in a statement this week. 

“While this measure is both welcome and an important first step, additional efforts will be needed to deliver more meaningful relief and support a broader shift in costs." 

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