Air Transat to cut hundreds of flights due to high jet fuel costs from Iran war

The Travel Group Managing Partner McKenzie McMillan says Canadian airlines are consolidating their schedules rather than cancelling flights.

MONTREAL — Soaring jet fuel prices have forced yet another Canadian airline to cull its schedule, with Transat A.T. Inc. announcing it will axe about 1,000 flights thanks to energy shocks triggered by the war in the Middle East.

The travel company, which owns Air Transat, said Wednesday it will reduce capacity by six per cent from May through October, which covers the critical summer travel season.

Transat plans to lower flight frequencies on some routes to Europe and the Caribbean and extend its suspension of service to Cuba through October amid a U.S. energy blockade of the island. Air Transat had scheduled 129 flights to four Cuban destinations between June 20, when the suspension period was previously due to end, and the end of October.

• Latest updates on company news here

On top of flight consolidation, the changes include postponing a new route between Toronto and Accra, Ghana, and cutting short its service between its home base of Montreal and Guadalajara, Mexico, the company said.

“The recent volatility in aviation fuel prices reflects an exceptional environment affecting the entire sector. We are closely monitoring the situation, as cost pressures continue to be felt across the industry,” said CEO Annick Guérard in a statement, adding that demand remains strong.

The decision comes after moves by Air Canada and WestJet to trim capacity as carriers across the globe drop less lucrative routes and ground older, less energy-efficient planes in the face of high fuel costs — and expectations they will persist for months.

Air Canada last week announced higher baggage fees and the suspension of a half-dozen routes, citing fuel costs that render them unprofitable. On Monday, WestJet announced flight capacity cuts from April through June — that month’s reduction will reach six per cent.

On Wednesday, German airline Lufthansa said it will cut 20,000 European short-haul flights this summer due to ballooning fuel costs. KLM-France, Delta Air Lines and other major carriers have slashed their schedules or raised ticket prices, passing on part of the extra expense to passengers.

Most Canadian airlines have added fuel surcharges to vacation packages or bookings made via loyalty points. They also hiked fare prices nearly five per cent on average in March from the month before, according to Statistics Canada.

The U.S.-Israeli war on Iran launched in late February caused an effective shutdown of the Strait of Hormuz, which typically carries about a fifth of the world’s crude oil, prompting massive spikes in the price of energy.

• Air Canada suspends flights to JFK airport due to jet fuel prices
• WestJet cuts flight capacity due to jet fuel costs, following Air Canada’s lead

Jet fuel prices shot up at even higher rates than oil amid the threat of massive shortages as the closure drags on and refineries in the Persian Gulf deal with damage from Iranian attacks. On Wednesday, the price of jet fuel from the U.S. Gulf Coast sat at roughly double prewar levels.

“It’s a very complex procurement cycle for jet fuel. Even if Hormuz is reopening or an agreement is reached ... it won’t take two weeks to become normal,” said Transat spokeswoman Andréan Gagné in a phone interview. The timeline would be much longer, she said.

The cancelled Air Transat flights add up to roughly 1,000 trips over six months, she said.

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Christopher Reynolds, The Canadian Press

This report by The Canadian Press was first published April 22, 2026.