Air Canada announced Friday it will suspend all flights to New York’s JFK International Airport from June 1 to October 25, citing skyrocketing jet fuel prices driven by the Iran conflict. The Montreal-based carrier attributed the decision to the doubling of fuel costs since the crisis began, rendering certain routes unprofitable.
Economic Impact on Airlines
The average price for a gallon of jet fuel surged to $4.32 this week, up from $2.50 before the Iran conflict. Air Canada stated it would rebook affected customers on flights to LaGuardia and Newark airports, which remain operational. Delta Air Lines also revealed this month that rising fuel costs would add $2 billion to its second-quarter expenses.
“As jet fuel prices have doubled since the start of the Iran conflict, some lower profitability routes and flights are no longer economic, and we are making schedule adjustments accordingly,” said an Air Canada spokesperson.
Global Implications
The Iran conflict has disrupted global energy markets, with the Strait of Hormuz reopening Friday after temporary closures. International Energy Agency Director Fatih Birol warned Thursday that Europe faces a severe jet fuel shortage, stating the global economy is confronting its ‘largest energy crisis.’ Airlines worldwide, including Lufthansa and KLM, are scaling back services or increasing fees to offset costs.
Air Canada’s decision underscores the broader economic impact of geopolitical instability on international travel and American workers dependent on the aviation industry.