Air Canada Halts US Routes Amid Rising Jet Fuel Prices: What You Need to Know

Air Canada Suspends US Services

Ottawa: Air Canada has revealed plans to suspend several routes to the United States, attributing the decision to skyrocketing jet fuel prices.

In a statement released on Friday, the largest airline in Canada noted that the cost of jet fuel has surged, doubling since the onset of the conflict in Iran, making certain routes financially unviable.

The affected services include both transborder and domestic flights. Specifically, connections from Montreal and Toronto to New York's John F. Kennedy International Airport will be halted from June 1 until October 25.

Additionally, the Toronto-Salt Lake City route will be suspended starting June 30, with a tentative return projected for 2027.

This suspension is expected to impact approximately 1 percent of the airline's annual available seat miles, as stated in their announcement.

In related news, the United States Department of the Treasury has extended a waiver that allows for the sale and delivery of sanctioned Russian oil that is already on vessels, with the new deadline set for May 16, according to an official document.

This extension follows the expiration of a previous 30-day waiver on April 11.

The renewed license, issued on Friday, is part of the administration's efforts to stabilize global energy prices, which have surged due to the ongoing US-Israeli conflict with Iran.

This decision comes as various countries grapple with the repercussions of rising energy costs and supply chain disruptions.

At the same time, the waiver maintains strict limitations on transactions involving specific nations.

This announcement follows comments from US Treasury Secretary Scott Bessent, who indicated that the US does not plan to extend such waivers indefinitely amid escalating geopolitical tensions.

On the global market, oil prices experienced a notable drop of about 9 percent on Friday, settling around $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a crucial energy transit route.

However, the ongoing conflict has already led to what the International Energy Agency has termed the most significant disruption to global energy supplies in history.

As the war enters its eighth week, reports indicate that over 80 oil and gas facilities across West Asia have sustained damage.