Air Transat and Air Canada are adjusting their flight prices due to the increased cost of jet fuel, which has been escalated by the ongoing oil crisis resulting from the conflict in the Middle East. Air Transat’s CEO, Annick Guérard, mentioned during the company’s recent earnings call that they have raised fuel surcharges for flights to Europe. Additionally, the airline is increasing fares on peak travel dates and routes with less competition. Air Canada has also confirmed that they are adjusting prices to account for the higher fuel costs.
Numerous international airlines, including Cathay Pacific, Air New Zealand, Qantas Airways, and Scandinavian Airlines, have implemented fuel surcharges to cover the surge in jet fuel prices following the conflict between the U.S., Israel, and Iran. Cathay Pacific has doubled the fuel surcharge on passenger tickets purchased in Canada. Meanwhile, some airlines like Japan Airlines are evaluating fuel cost changes over a two-month period before making adjustments.
Several airlines, such as Lufthansa and Ryanair, have hedging systems in place to temporarily stabilize fuel prices. However, WestJet mentioned that pricing adjustments may be necessary due to the increased operational costs resulting from the Middle East conflict. Air Transat has already raised surcharges on flight segments departing from Canada and Europe to offset the spike in fuel costs.
The price of jet fuel has significantly risen since the conflict began, becoming a major expense for airlines. According to the International Air Transport Association, jet fuel prices surged by 58.4% between February 27 and March 6. Canadian airlines are closely monitoring the situation and considering potential pricing adjustments to cope with the escalating fuel prices.