Air Canada is temporarily suspending all flights between Toronto and Montreal and New York John F. Kennedy International Airport (JFK) from June 1 to October 25, 2026. The carrier attributes the decision to rapidly soaring jet fuel prices. The airline stated in its announcement: "Jet fuel prices have doubled since the start of the Iran conflict, making low-margin routes economically unsustainable." In addition, Air Canada announced that the Salt Lake City-Toronto route is being suspended as of June 30 and is planned to resume in 2027. The launch of the Guadalajara-Montreal route is being postponed. Underlying all these decisions is the cost shock created by uncertainty in oil shipments originating from the Persian Gulf.
On April 17, 2026, another shock hit the industry: Spirit Airlines is requesting hundreds of millions of dollars in emergency funding from the U.S. federal government to offset rising fuel costs. The report is based on unnamed sources cited in industry publication The Air Current. With a low-cost business model, Spirit Airlines is reacting faster to rising oil prices than other major carriers in terms of fuel expenses' share of total operating costs, which is eroding the company's liquidity buffer. Industry observers note that this request should not be read as a localized problem affecting only a single airline, but rather as a widespread stress indicator in the North American aviation market.
According to assessments cited by The Guardian, the number of operators cutting services in response to rising fuel costs in the global airline sector is likely to increase. Tensions between the United States and Iran are effectively placing the free passage of fuel and other product-carrying vessels through the Strait of Hormuz in question, creating operational uncertainty across the entire aviation industry. Disruptions in jet fuel, bunker fuel, and refined product markets are eroding margins even on short-haul routes. The doubling of fuel prices since the start of the Iran conflict has initiated a period in which capacity management, route rationalization, and fuel hedging policies are being revisited for trans-Atlantic and trans-Pacific routes. Operators are simultaneously deploying tools such as schedule adjustments, frequency reductions, and seasonal closures of certain routes.
The situation is similarly deteriorating on the European side. According to The Guardian, budget carrier easyJet, based in the U.K., is forecasting a pre-tax loss of £540 million – £560 million ($702 million – $728 million) for the six-month period ending in March. This outlook is shaped not only by the spike in fuel costs but also by declining demand elasticity in the low-cost budget segment. For low-cost carriers operating on thin margins, fuel is among the largest components of operating costs; consequently, when prices double, a revenue gap emerges that cannot be filled from alternative sources. easyJet's forward guidance reveals that capacity planning and fleet utilization decisions are being rapidly revised across the continent. Throughout the sector, airlines are passing supply chain volatility to ticket prices, but due to customer price resistance, they are bearing a significant portion of the loss on their balance sheets. Against this backdrop, IATA, OPEC+ policies, and navigation safety in the Strait of Hormuz are emerging as key determinants of airline profitability in the near term, testing the resilience of passenger and cargo supply chains.
Key Points:
1. Air Canada is completely suspending Toronto and Montreal-JFK routes between June 1 and October 25.
2. Jet fuel prices have doubled since the start of the Iran conflict.
3. Spirit Airlines is requesting hundreds of millions of dollars in emergency funding from the U.S.
4. easyJet is forecasting losses of £540–560 million for the six-month period ending in March.
5. Uncertainty in the Strait of Hormuz is directly affecting aviation supply chains.
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