Air Canada Suspends Flights to New York Amid Rising Fuel Costs
Air Canada Suspends Flights to New York Amid Rising Fuel Costs

Air Canada has announced a temporary suspension of flights from Toronto and Montreal to New York's John F. Kennedy airport, citing rising fuel prices. The move comes as airlines worldwide grapple with elevated aviation fuel costs following the US and Israel's war with Iran, which entered a fragile ceasefire earlier in April. Although Iran reopened the Strait of Hormuz on Friday, helping ease oil prices, fuel costs remain significantly elevated after weeks of disruption.

Separately, Spirit Airlines has reportedly asked the US federal government for emergency funding to offset a surge in fuel costs, according to industry website The Air Current. Spirit did not immediately return a request for comment. Jet fuel prices have doubled since the start of the Iran conflict, affecting lower profitability routes, Air Canada said in a statement on Friday.

The affected routes include one flight from Montreal and three from Toronto, with suspensions starting 1 June and expected to resume on 25 October. Air Canada said it would continue flying to New York's LaGuardia and Newark airports 34 times daily from six Canadian cities. Other temporary suspensions include a Salt Lake City-Toronto route, halted from 30 June with plans to resume in 2027, and a delay to the launch of a Guadalajara-Montreal service.

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The airline anticipates these changes will affect 1% of its overall passenger-carrying capacity. Affected customers will be contacted with alternate travel options. Since the Iran conflict began in late February, airlines have warned that rising fuel costs are weighing on bookings. EasyJet recently forecast a pre-tax loss of £540m-£560m for the six months to March, while Qantas and Virgin Australia have announced ticket price increases and flight frequency reductions.

The International Energy Agency has warned that Europe has only six weeks of jet fuel reserves remaining before shortages could hit, attributing this to ongoing Middle East instability. Executive Director Fatih Birol said flight cancellations would soon follow if oil supplies from the region are not restored.

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