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Air Canada Cuts US Flights as Fuel Costs Soar Amid Iran Conflict

Air Canada is suspending several routes to the United States, including services from Montreal and Toronto to New York's JFK Airport, citing jet fuel costs that have doubled since the onset of the Iran conflict. The suspensions will run from June to October, with the Toronto-Salt Lake City route halted until 2027. Concurrently, the US Treasury Department has extended a waiver allowing the delivery of sanctioned Russian oil until May 16 in an effort to stabilize global energy markets. This occurs as global oil prices dropped sharply after Iran temporarily reopened the Strait of Hormuz, despite the conflict causing historic disruptions to energy supplies.

Key Points: Air Canada Suspends US Routes Over Soaring Jet Fuel Costs

  • Flights from Montreal/Toronto to NYC paused
  • Toronto-Salt Lake City route suspended until 2027
  • US extends waiver for Russian oil deliveries
  • Global oil prices fell 9% after Hormuz reopening
  • IEA warns of worst energy supply disruption
2 min read

Air Canada to suspend some flights to US over jet fuel costs

Air Canada suspends flights to New York and Salt Lake City due to doubled fuel prices from Iran conflict, as US extends Russian oil waiver.

"jet fuel prices have doubled since the start of the Iran conflict - Air Canada statement"

Ottawa, April 18

Air Canada has announced it will suspend service on several routes to the United States due to soaring jet fuel costs.

According to a statement from Canada's largest carrier on Friday (local time), jet fuel prices have doubled since the start of the Iran conflict, rendering some routes and flights no longer economically feasible.

The suspensions affect a mix of transborder and domestic services. Service from Montreal and Toronto to New York's John F. Kennedy International Airport will be paused from June 1 to October 25.

Air Canada will also suspend its Toronto-Salt Lake City route on June 30, with a tentative return set for 2027.

The total impact on the airline's planned capacity is roughly 1 per cent of annual available seat miles, the statement said.

Meanwhile, the United States Department of the Treasury has extended a waiver permitting the delivery and sale of sanctioned Russian oil already loaded onto vessels, pushing the deadline to May 16, according to a document released on its official website.

The earlier 30-day waiver had expired on April 11.

The renewed license, issued on Friday (local time), is part of the administration's broader effort to stabilise global energy prices, which have surged amid the ongoing US-Israeli conflict with Iran.

The decision comes against the backdrop of several countries facing problems with the impact of rising energy costs and supply disruptions.

At the same time, the waiver continues to impose strict restrictions on dealings involving certain countries.

The move comes shortly after remarks by US Treasury Secretary Scott Bessent, who had indicated that Washington does not intend to continue such waivers indefinitely amid rising geopolitical tensions.

Meanwhile, global oil prices saw a sharp decline of around 9 per cent on Friday, settling near $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a key global energy transit route.

However, the broader conflict has already triggered what the International Energy Agency described as the worst disruption to global energy supplies in history.

The war, which entered its eighth week on Saturday, has reportedly damaged more than 80 oil and gas facilities across West Asia.

- IANS

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Reader Comments

S
Sarah B
Interesting to see the US extending the Russian oil waiver while tensions are so high. It's a practical move to control prices, but feels contradictory to the sanctions' spirit. The global energy market is in a very tricky spot.
P
Priya S
As someone with family in Toronto, this is disappointing news. Flights to visit become more expensive and less frequent because of conflicts far away. The common citizen always pays the price.
A
Aman W
The Strait of Hormuz reopening caused a 9% price drop in a day! This shows how fragile the whole system is. India must double down on its renewable energy goals and reduce this volatile dependency.
K
Karthik V
"Worst disruption in history" according to IEA is a serious warning. It's not just about flights; it will impact everything from logistics to daily commodities. Governments need to think long-term, not just short-term waivers.
M
Michael C
While I understand the economic necessity for Air Canada, suspending a route until 2027 is a massive decision. That's three years away. It shows they have zero confidence in fuel prices stabilizing soon. A worrying sign for global travel.

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