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

Due to the recent increase in global fuel prices, Air Canada Vacations (ACV) has announced a new surcharge across all sun destinations.

According to a memo sent to trade partners this week, a fixed $50 per-passenger surcharge will be applied to new ACV bookings that include a flight component, effective Monday, April 6.

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.

“This measure supports continued safe and reliable operations without compromising service quality,” wrote Elish Tait, national accounts manager at ACV, in the memo, which was shared with PAX.  

Rising travel costs

The update comes as a global jet fuel shortage drives up air travel costs.

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

Global economies are grappling with disrupted energy exports caused by the closure of the Strait of Hormuz and damage to critical infrastructure in the region.

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.

Fuel typically makes up 20–25 per cent of airline operating expenses, second only to labour, and many airlines no longer hedge fuel prices, leaving them more exposed to sudden spikes.

Air Canada Vacations is the latest Canadian travel company to address the issue.

READ MORE: Air travel costs increase as fuel prices surge amid Iran conflict

“Fuel is one of the most significant costs in airline operations, and this surcharge helps ensure service reliability,” ACV wrote in its memo.  

Porter Airlines is also taking measures to mitigate rising costs. Last week, 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.

READ MORE: Porter adds redemption surcharge due to global fuel prices

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

“We want to be transparent about why this change is necessary. Fuel represents the highest cost of airline operations and this surcharge allows us to maintain the number of points required for redemption,” the airline said.

Transparency is “a priority”

In a statement to PAX on Tuesday (March 31), Air Canada Vacations stressed the importance of proactively giving the travel advisor community “a heads‑up” before the surcharge took effect.

“Transparency with the trade remains a priority for us, particularly when it comes to pricing‑related changes that may impact their client conversations,” the statement reads.

The tour operator is encouraging travel advisors to contact their respective sales or key account manager if they have any questions or need additional context.

“Our teams are fully briefed and ready to support advisors one‑on‑one,” said ACV.

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 yesterday 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.”

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