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Air Canada Drops Major US Routes Amid Rising Fuel Costs and Iran Conflict



Air Canada has announced the suspension of select flights bound for the United States as jet fuel prices have surged dramatically in response to the ongoing conflict in Iran. The airline’s decision, which will take effect this summer and last for at least five months, impacts all service to John F. Kennedy International Airport (JFK) in New York City and Salt Lake City International Airport (SLC) in Utah.

The airline stated that it regularly reviews its network to ensure that routes meet profitability targets. “Jet fuel prices have doubled since the start of the Iran conflict, affecting some lower profitability routes and flights which now are no longer economically feasible,” the carrier said in a statement. “Schedule adjustments including some frequency reductions are being made in response.”



Affected customers will be contacted with alternative travel options, according to the Canadian carrier. The suspension of service to JFK will run from June 1 through October 25, 2026, from Air Canada’s two hubs in Montreal and Toronto. This move may indicate a consolidation strategy, as routes to nearby airports like Newark (EWR) and LaGuardia (LGA) remain unaffected.

According to Air Canada’s website, the airline operates more heavily out of EWR and LGA than JFK, with local outlet CTV News reporting roughly 34 daily departures from across Canada.



Flights to Salt Lake City, typically served only from Toronto Pearson (YYZ), will be suspended beginning June 30, with service expected to resume in 2027, creating a roughly six-month gap. The airline also mentioned that two domestic routes and one international service were affected.

Routes between Vancouver and Fort McMurray will be suspended on May 28, while service between Toronto and Yellowknife will be halted on August 30. Both Fort McMurray and Yellowknife, which are considered lower-volume markets, do not have a resumption date.



Additionally, Air Canada had planned to launch service between Montreal and Guadalajara, Mexico, but this route has now been indefinitely suspended. The airline emphasized that these changes represent only a small portion of its global operations, affecting about 1% of its total annual flying capacity for 2026.

Jet fuel prices have risen to $3.79 per gallon on Friday, marking more than a 50% increase since the day before the Iran war broke out on February 27, according to Airlines for America.

Several U.S. airlines have also adopted new cost-cutting measures to offset rising jet fuel prices. For example, JetBlue, Southwest, American, and United Airlines have increased checked baggage fees.

Air Canada has not yet provided further details on the impact of these changes or potential future adjustments.

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