Transat to apply $50 surcharge on South packages starting April 10

Transat has become the latest travel company to impose a surcharge due to current increases in fuel costs brought on by ongoing conflict in the Middle East, 

Following in the footsteps of Air Canada Vacations, Sunwing Vacations, Vacances WestJet Québec, WestJet, Porter Airlines and Flair Airlines, Transat will implement a carrier surcharge of CAD $50 per passenger on new bookings of South packages as of April 10, 2026.

The update was shared in a memo sent to travel advisors on Tuesday (April 7).

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

Reservations that have already been confirmed are not affected, says Transat, and the surcharge will be included in the usual taxes and fees at the time of booking.

The surcharge will not apply to group quotes submitted prior to April 10, 2026, Transat notes.

As of that date, additional fees will apply to any new group quote as well as to the addition of travellers to existing reservations.

READ MORE: WestJet Rewards to add $60 fuel surcharge to companion vouchers

“Despite the current context and cost pressures, we wish to thank our customers and partners for their understanding,” the company wrote. “We remain fully committed to delivering high-quality vacation experiences that reflect Transat's standards of excellence.”

Rising prices & ripple effects

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, such as in Edmonton, where WestJet will reduce some capacity.

READ MORE: ACV implements $50 surcharge on sun destinations amid rising fuel costs

Lorn Sheehan, a professor with the faculty of management at Dalhousie University in Halifax, recently 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.”

Alberta-based travel advisor Hidar Elmais of Travel Gurus says 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.”

The latest on the Strait of Hormuz

U.S. President Donald Trump announced Tuesday evening (April 7), just hours before a critical deadline, that he has agreed to pause bombing and military strikes against Iran for two weeks, provided that Iran reopens the Strait of Hormuz.

Earlier, Trump had warned that “a whole civilization will die tonight” if Iran did not reach an agreement in time. He also threatened large-scale U.S. strikes on civilian infrastructure and dismissed concerns about potential war crimes.

Iran stated that it will allow safe maritime traffic through the Strait of Hormuz for a two-week period as long as ships coordinate with Iranian armed forces. 

Foreign Minister Abbas Araghchi added that Iran will halt its military operations as long as it is not attacked.

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