As the fallout from the Iran war and closure of the Strait of Hormuz continue to hammer world oil markets, the cost of jet fuel has soared, leading most airlines to raise ticket prices, juggle schedules and ground services across their networks. The latest casualty is some of Air Canada’s US services.
The Canadian flagship carrier announced on Friday that, for its summer schedule, it would suspend flights to John F. Kennedy International Airport in New York City and Salt Lake City International Airport.
In a statement, the airline said the cuts will last at least five months, from June 1 through Oct. 25, and will affect services from its hubs in Montreal and Toronto. Air Canada services to other New York area airports Newark and LaGuardia airports remain unaffected. Service to Salt Lake City is expected to resume in 2027.
In addition, Air Canada also suspended two domestic routes and another international service. The airline will contact affected customers to offer alternative travel options, according to the announcement.
Air Canada’s move follows a sharp rise in fuel prices since the commencement of military action in Iran and the Gulf Region Feb. 27. According to the Argus US Jet Fuel Index, the cost of jet fuel eased somewhat on Friday to $3.79 per gallon, down from a peak of $4.88 per gallon on April 7. Still, the current price has almost doubled since the beginning of 2026.
Typically, the cost of fuel is an airline’s second-largest line item after labor. The rise in jet fuel prices is forcing most carriers to adopt cost-cutting measures and increasing prices. Already American, United Airlines, JetBlue, Southwest and the Alaska Air have increased checked bag fees, and other airlines have posted higher airfare or added fuel surcharges to recover some of the losses generated by rising costs.
Meanwhile, like Air Canada, most carriers around the world have trimmed their schedules and cut capacity to achieve some kind of balance between service levels and economics. After all, airplanes that do not fly do not burn expensive fuel – but neither do they make money.
