Fri. May 8th, 2026

Air Canada Suspends 4 More U.S. Routes as Fuel Prices Surge Amid Middle East Conflict

Air Canada is suspending four additional routes to the United States this summer as soaring aviation fuel prices continue impacting the airline industry.

The airline says jet fuel prices have doubled since the start of the Iran conflict, making several lower-profit seasonal routes economically unfeasible.

The latest route suspensions include:

  • Toronto to Sacramento — last flight Aug. 1
  • Vancouver to Raleigh — last flight July 29
  • Toronto to Charleston — last flight Sept. 6
  • Montreal to Austin — last flight Sept. 7

Air Canada confirmed the affected routes are seasonal services and said it plans to resume them in summer 2027.

The airline said customers impacted by the cancellations will be contacted directly and offered alternate travel arrangements or full refunds where applicable.

The latest cuts come after Air Canada already announced seven route suspensions in April, including domestic, international and U.S. services.

Previously suspended routes include:

International Routes

  • Montreal to Algiers, Algeria
  • Montreal to Guadalajara, Mexico

Domestic Routes

  • Fort McMurray to Vancouver
  • Yellowknife to Toronto

U.S. Routes

  • Toronto to Salt Lake City
  • Toronto to New York JFK
  • Montreal to New York JFK

According to the airline, the closures are tied largely to the global spike in fuel costs following escalating tensions involving the United States, Israel and Iran, along with disruptions through the Strait of Hormuz, one of the world’s most important oil transit corridors.

Industry analysts estimate the closure and instability in the region have reduced nearly 20 per cent of global fuel supply availability, sending gasoline and jet fuel prices sharply higher since late February.

The International Air Transport Association reported the average global jet fuel price last week climbed to approximately $181 U.S. per barrel.

Despite the operational challenges, Air Canada reported first-quarter revenues of $5.8 billion, an 11 per cent increase compared to the same period in 2025, driven by continued strong travel demand.

However, the airline has suspended its full-year 2026 financial guidance because of ongoing uncertainty around fuel costs.

Air Canada president and CEO Michael Rousseau said the airline hopes to offset part of the increased fuel expense through commercial and operational adjustments, while maintaining confidence in the company’s long-term financial position.

At the same time, new Statistics Canada data shows Canadian travel to the United States has now declined for 14 consecutive months.

In March 2026:

  • Air travel by Canadians returning from the U.S. dropped 13.8 per cent year-over-year.
  • Automobile return trips from the U.S. fell 4.5 per cent.

Air Canada says demand across much of its broader network remains strong despite the ongoing fuel volatility and geopolitical uncertainty.

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