Air India scales back flights to Canada as jet fuel prices rise

Rising jet fuel costs have forced Air India to scale back its Canada–India operations, reducing travel options and driving up ticket prices for Canadians planning trips to the subcontinent.

The carrier told CBC News it trimmed its Delhi–Toronto service in May from 10 weekly flights to seven, while flights between Delhi and Vancouver were cut from seven per week to five.

According to an internal memo from CEO Campbell Wilson, verified by The Canadian Press, Air India has already reduced flight capacity for April and May and is preparing additional cuts for June and July.

"This is in response to the massive rise in jet fuel prices which, together with airspace closures and longer flying routes, has caused many of our international flights to become unprofitable to operate," Wilson wrote in last week's memo.

"To partially compensate for the huge spike in costs, we have increased airfares and imposed fuel surcharges but, understandably, these higher airfares impact customer demand, so we can only raise fares so far before people decide to stay home."

Data from aviation analytics firm Cirium shows round-trip flights between Toronto and Delhi dropped to 31 in May from 48 in March — a decline of roughly 35 per cent.

Meanwhile, Vancouver–Delhi service has fallen to about five weekly flights after previously operating daily earlier this year.

READ MORE: Jet fuel shortage now a “known event” for insurance, says Manulife

The lengthy international routes require significant fuel usage, and airlines worldwide have responded to soaring fuel prices by raising fares, cancelling routes, and parking aircraft.

Fuel costs have surged to nearly twice pre-conflict levels following disruptions to Persian Gulf energy exports linked to the closure of the Strait of Hormuz during the Iran crisis.

With fewer seats available and ticket prices climbing, travel between Canada and India is becoming increasingly expensive and less accessible for passengers on both sides of the Pacific.

While Air Canada continues to operate daily Toronto–Delhi flights, it has yet to restore its direct Vancouver–Delhi service suspended during the COVID-19 pandemic.

Airlines trim routes

Earlier this week, Air Canada revealed that it will end four seasonal U.S routes early this summer because of rising fuel costs. 

According to a spokesperson who spoke to CTV News, the affected routes are Toronto to Sacramento (last flight August 1), Vancouver to Raleigh (last flight July 29), Toronto to Charleston (last flight Sept. 6). and Montreal to Austin (last flight Sept. 7).

As previously reported, the airline is also temporarily halting flights from Toronto and Montreal to John F. Kennedy International Airport from June 1 through Oct. 25.

The carrier is also suspending its Toronto–Salt Lake City as of June 30, with plans to potentially restart it next year.

On the international front, the carrier has cancelled its planned new nonstop service from Montreal to Guadalajara, which had been scheduled to launch on June 2.

The airline’s seasonal Montreal – Algiers route for the summer 2026 season has also been suspended.

WestJet, too, has plans to cut capacity to offset rising fuel expenses.

The airline expects to reduce flights by roughly three per cent in May and close to six per cent in June, while continuing to review its summer schedule for possible additional cancellations.

Air Transat has also reduced planned capacity by six per cent from May to October, with the extended suspension of its Cuba service through October accounting for most of that reduction.

Now a “known event”

Manulife, this week, announced that global jet fuel shortages are now treated as a “known event” under its Trip Cancellation and Interruption Insurance policies.

According to a Manulife advisory, travellers who buy coverage on or after May 5, 2026, will not be eligible for benefits if their trip is affected by related disruptions, since “benefits would not apply due to the current situation being a known event.”

Customers who purchased coverage before May 5 may still qualify for assistance through “misconnection or disruption benefits” if “the current situation causes a delay or disruption to an insured’s return home.”

The company also stated that if an insured trip is cancelled or interrupted on or after May 5, “benefits related to this current situation would not apply, as it is now considered a known event.”

Manulife already applies similar restrictions to travel involving the Middle East and Cuba. The Middle East was designated a “known event” on Feb. 28, 2026, while Cuba received the same designation on Feb. 10, 2026.

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