Airlines worldwide scale back flights as fuel costs surge

A growing number of global airlines are reducing routes and suspending services as soaring jet fuel prices, driven by conflict in the Middle East, reshape the aviation landscape.

What began as rising operational costs has quickly escalated into widespread flight cuts, signalling deeper strain across the industry.

The ripple effects of the conflict involving the United States, Israel, and Iran have disrupted key supply chains, leaving oil stranded in storage facilities throughout the region.

As a result, jet fuel prices have surged dramatically, nearly doubling to around $200 per barrel, reports say. 

For countries without domestic fuel production or with limited reserves, access to jet fuel is becoming increasingly constrained.

READ MORE: Air Canada suspends YYZ & YUL flights to JFK over jet fuel costs

North American carriers are already responding. As reported, Air Canada told CBC News on Friday (April 17) that it will temporarily suspend select routes due to rising fuel costs.

Beginning June 1, flights connecting Toronto and Montreal with New York’s John F. Kennedy International Airport will be halted, with plans to resume service on October 25.

Air Canada later announced that it will other six routes – both within Canada and between Canada and the U.S.

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.
• A planned route from Guadalajara to Montreal has been cancelled.

Flight reductions are also taking place in Edmonton, Alberta.  As reported in the Edmonton Journal, WestJet is planning to reduce some routes this spring as its deals with jet fuel prices.

“Fuel prices continue to rise, and as a result we have adjusted our flying to align with demand and best manage associated fuel costs,” the company wrote in an email to Postmedia.

“This includes consolidating flights on lower demand routes and adjusting the travel period for seasonal offerings. We have reduced capacity across our network by approximately one per cent in April and three per cent in May, which included some flights in Edmonton.”

In the United States, United Airlines is also preparing for cutbacks. CEO Scott Kirby said in a March memo that the airline will reduce flights over the next two quarters, focusing on eliminating off-peak and overnight services.

European carriers

In Europe, Ryanair is weighing similar reductions. CEO Michael O'Leary warned of potential fuel supply risks in an interview with Sky News.

"We don't expect any disruption until early May, but if the war continues, we do run the risk of supply disruptions in Europe in May and June," he was quoted as saying.

Meanwhile, KLM confirmed it would cancel 80 return flights from its hub at Amsterdam Airport Schiphol.

The airline cited rising kerosene costs, stating that these routes were “no longer financially viable to operate,” while emphasizing there is no current fuel shortage.

Germany’s Lufthansa is taking more drastic action by retiring dozens of aircraft ahead of schedule, largely impacting its regional fleet.

READ MORE: Air Canada cuts six routes “no longer economically feasible” amid rising fuel costs

This move coincides with the shutdown of its struggling subsidiary Lufthansa CityLine and ongoing labour disputes.

Other European carriers are also feeling the pressure.

Edelweiss Air will discontinue flights to U.S. cities including Denver and Seattle, while reducing frequency to Las Vegas due to weaker demand and higher fuel costs.

Scandinavian Airlines also plans to cut approximately 1,000 flights in April alone as expenses mount, according to Business Insider.  

“It’s a dire strait now”

The head of the International Energy Agency (IEA) warned Thursday that Europe may only have about six weeks of jet fuel remaining as airlines continue to face pressure from the Middle East crisis.

READ MORE: Jet fuel supply may take months to recover despite ceasefire, says IATA

IEA Executive Director Fatih Birol said in interview with The Associated Press that a blockade of the Strait of Hormuz would trigger "the largest energy crisis we have ever faced."

“In the past there was a group called ‘Dire Straits.’ It’s a dire strait now, and it is going to have major implications for the global economy. And the longer it goes, the worse it will be for the economic growth and inflation around the world,” he was quoted as saying.

European airline EasyJet said Thursday that the Middle East conflict and higher fuel costs are affecting customer bookings, with ticket purchases for later this year down two per cent compared with 2025.

The budget carrier also said it incurred about £25 million in additional fuel costs in March alone and has hedged at least 70 per cent of its summer fuel needs to guard against volatility.

ACI Europe, which represents airports across the European Union, said last week that peak summer travel will face disruption, bringing “harsh economic impacts” for several member states that depend on the boost.

Situation in Asia

In Asia, airlines are similarly tightening operations.

Vietnam Airlines has already suspended seven domestic routes and may reduce total flight volume by up to 20 per cent if fuel prices continue rising.

Budget carriers like Vietjet Air and Bamboo Airways are following suit with their own reductions.

Malaysia-based AirAsia has cut 10 per cent of its flights and increased fares to offset higher costs, particularly on routes where fuel expenses can no longer be justified.

Elsewhere, Air New Zealand plans to trim about five per cent of its flights starting in May.

CEO Nikhil Ravishankar explained the strategy to local outlet 1News: “"We're focused on consolidating flights that are off-peak flying hours, for example, or where there is an alternative that we can re-accommodate customers,

As the conflict continues, the aviation sector faces mounting uncertainty. 

With fuel prices climbing and supply chains under strain, airlines are being forced to make difficult decisions—cutting routes, reducing capacity, and rethinking operations—to stay afloat in an increasingly volatile environment.

"Without fuel, you can’t fly"

Iran’s foreign minister said on Friday that commercial shipping through the Strait of Hormuz is fully open, following a 10-day ceasefire agreement tied to the Israel–Lebanon conflict.

At the same time, U.S. President Donald Trump stated that the U.S. naval blockade on Iran will stay in place until Washington reaches a broader agreement with Tehran.

John Gradek, a lecturer in aviation management at McGill University in Montreal, said in an interview with CBC News earlier this week that the aviation industry is currently facing what he considers its most severe crisis to date.

READ MORE: Fuel tax holiday “a meaningful first step,” says WestJet, but surcharges will remain

He said even if the Strait of Hormuz were to reopen, restoring the region’s fuel refining capacity could take several years.

"And without fuel, you can’t fly," Gradek told the outlet.

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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