Air Canada (TSX: AC) just made a move that affects travelers heading from major cities in eastern Canada to New York. The airline plans to stop flights from Toronto and Montreal to JFK International Airport starting June 1st, with service picking back up on October 25th. This change comes as jet fuel prices climb sharply due to the ongoing conflict in Iran.
Jet fuel stands as one of the largest expenses for any airline, often eating up 25-30% of total operating costs. Right now, prices have roughly doubled since the war in Iran began earlier this year. For context, a gallon of jet fuel hit about $4.32 recently, up from levels around $2.50 before the trouble started. That kind of jump makes some routes too costly to keep running, especially shorter hops like those to JFK.
Air Canada reviews its network often to check which paths bring in enough revenue. When fuel costs spike like this, they adjust by pausing less busy or lower margin flights. Affected passengers get notifications with options to switch to flights at nearby LaGuardia or Newark Liberty airports, both still served multiple times a day from Toronto, Montreal, and four other Canadian cities.
Europe feels the pinch hardest, with supplies down to perhaps six weeks and carriers like Lufthansa and KLM already cutting flights. In Canada, the situation looks better since most jet fuel comes from domestic refineries or the U.S., covering about 85% of needs. Still, no airline escapes the global ripple effects.
For business folks or families planning summer trips to New York, this means rerouting through LaGuardia or Newark. Those airports handle dozens of daily flights from Canada, so capacity exists, but it could add travel time with ground transfers. Air Canada expects to rebook everyone smoothly, avoiding outright cancellations. Fares might tick up too, as some airlines add fuel surcharges or raise fees, like Air Canada’s recent hike on checked bags to $45 for basic economy on U.S. routes.
Events like the FIFA World Cup across Canada, the U.S., and Mexico this summer add pressure. International fans from Europe and Asia count on reliable flights, so governments and airlines push hard to resolve fuel issues fast. Canada stays in a stronger spot than Europe, but the industry faces unfamiliar supply squeezes unlike past crises from recessions or pandemics.
This is not just Air Canada. Global carriers trim schedules when fuel turns routes unprofitable. Delta pegged extra second-quarter costs at $2 billion from higher prices. Others like WestJet introduce surcharges. Air Canada keeps strong service to New York overall, with 34 daily flights to the other airports from six cities. The pause lets them focus resources where demand holds up better.
Experts note JFK slots cost a lot to operate, so suspending them saves money without hurting profits much, per some analyst estimates. Travelers benefit from alternatives nearby, keeping New York accessible. As fuel eases with the Strait reopening, routes like these could return stronger.
