Rising fuel prices: Flair, Sunwing Vacations add surcharges, WestJet reduces Edmonton capacity

As jet fuel prices climb due to shortages tied to ongoing Middle East conflict, more Canadian travel companies are introducing temporary surcharges on packages and airfares.

Flair Airlines was the latest to introduce a variable carrier surcharge on many routes on Monday (April 6).

In a statement to the Calgary Herald, the move reflects changing costs. “Like all airlines, Flair operates in a dynamic cost environment, with fuel representing a significant and volatile expense,” a Flair spokesperson wrote in an email. “We’ve taken a transparent approach by clearly displaying this charge at the time of booking, so customers understand what they are paying and why.”

Flair says the surcharge differs depending on the route and is clearly shown at the time of booking.

As of Monday, domestic round-trip flights included a $40 fee, while certain international routes—like Calgary to Puerto Vallarta—had a $60 surcharge, the Calgary Herald reported.

Flights to the U.S. did not appear to have this extra charge. The airline said the fee applies on a market-by-market basis.

Sunwing Vacations adds $50 surcharge

Canadian airlines and tour operators are taking different approaches to handling the situation.

As PAX previously reported, WestJet Rewards, starting April 8, will introduce a temporary fuel surcharge of $60 on all bookings made with a companion voucher.

“We will continue to assess the surcharge and adjust as conditions allow,” airline spokesperson Julia Kaiser wrote in an email to PAX on April 3.

“Fuel is the largest contributor to airline operating costs, and a temporary surcharge helps us manage the recent surge in fuel prices. While airfares can be adjusted and have greater flexibility in pricing, the nature of our companion vouchers does not allow for this same flexibility.”

In an updated statement circulated Tuesday (April 7), the WestJet Group said a fuel surcharge of $50 per person will apply to bookings with Sunwing Vacations and Vacances WestJet Québec that are made as of April 14 (existing travellers and bookings will not be affected).

The surcharge will be included within the regular taxes and fees at the time of booking and is applicable to all Sunwing and Vacances WestJet Québec bookings, the company said

“WestJet airfares and WestJet Vacations packages reflect current operating costs and will continue to fluctuate based on market supply and demand,” the company said.

“We appreciate our guests’ understanding as we navigate these unprecedented cost pressures and remain committed to providing exceptional travel experiences to our guests.”

Air Canada Vacations (ACV) has also announced its own measure to address rising fuel costs.

As PAX reported, a fixed $50 per-passenger surcharge, as of April 6, will be applied to new ACV sun bookings that include a flight component.

The fee will be applied and reflected within the selling taxes and surcharges at the time of booking, said ACV, noting that existing bookings will not be affected.

The $50 surcharge applies exclusively to ACV’s sun packages and does not extend to Air Canada’s mainline operations.

Air Canada spokesperson Peter Fitzpatrick told PAX that the airline is managing fuel costs through fares, which “continually go up and down in response to a variety of factors, such as but not limited to demand, competition and costs.”

Porter Airlines, too, has taken measures to mitigate rising costs. Recently, the airline announced a temporary surcharge on VIPorter flight redemptions.

In a message sent to VIPorter members, the airline said the charge will be applied as a “Peak Surcharge” on all reward bookings, per passenger, each way.

Porter expects the charge to be temporary, saying it will be removed once oil prices stabilize.

Rising prices, reduced routes

Rising prices are the latest sign of the economic ripple effects stemming from the United States and Israel’s war with Iran.

The closure of the Strait of Hormuz has strained global oil supplies and led to a spike in the price of oil and a larger increase in the price of jet fuel, which typically accounts for approximately 20 per cent of an airline’s costs.

As previously reported, airlines worldwide have warned that a surge in fuel prices could cost the airline industry hundreds of millions of dollars, leading to higher ticket prices and reduced flight routes.

Edmonton is one city that’s already seeing some reduced flight access. 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.”

Guests impacted by the changes have been provided recommendation options within the same day as their original departure, the company said.

Lorn Sheehan, a professor with the faculty of management at Dalhousie University in Halifax, told CTV News that airlines don’t have many avenues to recover from fuel increases.

“I think [airlines] are trying to be as sensitive as they can, knowing that consumers are incredibly price sensitive when it comes to the cost of airline travel,” Sheehan told the outlet. “When prices go up, discretionary travel, vacations, and pleasure travel tends to fall.”

The cost of waiting

Alberta-based travel advisor Hidar Elmais of Travel Gurus said his agency has seen a big jump in airfares over the past month.

Speaking recently with Yahoo News, Elmais noted that he’s urging travellers to book sooner rather than later, warning prices are expected to continue climbing over the next year.

“Waiting is costing people hundreds of dollars,” he told the outlet. “People are waiting a week or two and they’re coming back to us saying, ‘OK, let’s book those flights,’ and they’re thousands of dollars more expensive.”

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