Air Canada JFK suspension begins 1 June amid Iran war jet fuel shortage and higher prices

Air Canada said it will pause flights to New York’s JFK International Airport during the summer. The airline linked the decision to jet fuel shortages tied to the war in Iran. The carrier said the change affected routes from Toronto and Montreal. Other Air Canada flights to the New York area will still operate.

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The airline said on Friday that service to JFK will stop on June 1 and restart on Oct. 25. Flights to LaGuardia and Newark will continue throughout this period. Air Canada said it runs 34 flights a day to those two airports. Those flights operate from six Canadian cities.

Air Canada JFK flights halted as jet fuel costs surge

Air Canada said it will contact travellers affected by the suspension and offer other travel options. A spokesperson explained the reason for the change on Friday. "As jet fuel prices have doubled since the start of the Iran conflict and some lower profitability routes and flights are no longer economic, and we are making schedule adjustments accordingly,\" the spokesperson said.

Data from Argus Media showed a sharp jump in jet fuel prices this week. The average cost reached $4.32 a gallon on Thursday. It had been $2.50 the day before the war in Iran began. Airlines often adjust schedules when fuel costs rise and margins shrink.

Air Canada JFK decision follows oil market shifts

Oil prices fell more than 10% on Friday after Iran made a key shipping statement. Iran said the Strait of Hormuz is open again for commercial tankers. The waterway is used to move oil from the Persian Gulf to buyers worldwide. Traders reacted quickly to the change in supply concerns.

Fuel and labour usually make up the biggest yearly costs for airlines. Delta Air said this month higher fuel would add $2 billion to second-quarter costs. Some carriers are also raising bag fees to cover rising bills. JetBlue and United Airlines were among those increasing baggage charges.

Airlines outside North America have also reduced flying because of fuel costs. Lufthansa and KLM have cut back service as some routes stop making money. In an exclusive Associated Press interview on Thursday, International Energy Agency Director Fatih Birol said Europe has maybe six weeks of jet fuel left. Birol also said the global economy faces its largest energy crisis.

With inputs from PTI