Air Canada is suspending multiple flights and increasing fees as soaring fuel costs reshape travel plans amid the ongoing U.S.-Iran conflict. Jet fuel prices have doubled since the start of this conflict, affecting airline profitability.
The flight suspensions include routes from Toronto and Montreal to JFK International Airport. Air Canada has also suspended the route from Algiers to Montreal for summer 2026, with plans to resume in 2027. The latest suspension affects flights from Fort McMurray to Vancouver, effective May 28, 2026.
Rising fuel costs are reflected in ticket prices, with some fares increasing by $50 to $100. Air Canada has increased checked baggage fees for certain fare types effective April 13, 2026. These changes come as airlines adapt to uncertain travel demand.
The Regina Airport Authority is balancing growth ambitions with these rising costs. CEO James Bogusz stated that profitability for airlines is critical to maintain routes. He emphasized the importance of continuing minimum revenue guarantees for U.S. flights.
Key facts:
- Jet fuel prices have doubled since the Iran conflict began.
- Air Canada’s flight suspensions include major routes from Toronto and Montreal.
- Ticket prices have increased by $50 to $100 due to rising costs.
- Regina Airport reported an annual loss of $800,000.
- The airport generated an EBITDA of $9 million last year.
James Bogusz noted, “We’re going to keep delivering value to the airlines to encourage them to fly.” The airport is actively working to bring new routes, with Ottawa being a priority.
As airlines navigate these challenges, they face pressure on profitability and route sustainability. The situation continues to evolve as the U.S.-Iran conflict persists and its impacts on jet fuel prices remain significant.
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