The trigger is the US-Israeli conflict with Iran, which disrupted oil supply routes and sent energy markets into a sharp upward spiral. Airlines had already been recovering from pandemic-era losses and were not prepared to absorb another major cost shock of this scale. The response across the industry has been swift and consistent: fewer seats, higher prices, and revised financial forecasts.
Canada's largest airline is trimming four of its 38 daily flights between Canada and New York's JFK International Airport. The cuts run from June 1 through October 25, 2026, covering the heart of the summer travel season. If you were planning a quick trip between Toronto and New York this summer, expect fewer options and stronger competition for remaining seats, which pushes prices up even before any surcharge is added.
WestJet has announced a 6 percent reduction in planned capacity running from May through October 2026. The cuts fall hardest on routes to Europe and the Caribbean. WestJet's Cuba service remains suspended through at least October. For Canadians who rely on WestJet for winter sun destinations booked in advance, the reduced Caribbean schedule means booking earlier than ever is critical this year.
The fuel crisis is truly global. Below is a plain-English breakdown of how major carriers are handling it, listed in alphabetical order by region.
The Greek carrier has warned of a "notable impact" on its quarterly results from suspended Middle East flights and surging fuel costs. Passengers on Aegean routes connecting to southern Europe should expect reduced availability and higher base fares.
India's Akasa Air introduced a fuel surcharge ranging from 199 to 1,300 Indian rupees (approximately $2 to $14 CAD) on both domestic and international flights. The surcharge is tiered by route distance.
The group's Dutch arm KLM cancelled 160 flights across Europe in a single month as fuel costs surged. Air France-KLM also raised long-haul ticket prices, with cabin fares increasing by 50 euros (approximately $74 CAD) per round trip.
Air India moved away from a flat domestic fuel surcharge to a distance-based pricing grid, meaning longer flights now carry a proportionally higher surcharge. The airline noted that its previous flat-rate structure no longer came close to covering its actual fuel expenses on international routes.
The group's executives confirmed it had cut approximately 10 percent of flights across its network and applied a fuel surcharge of around 20 percent on tickets generally. AirAsia operates across Southeast Asia and is a common connection point for Canadians travelling to that region.
Delta reduced its capacity by approximately 3.5 percentage points from its original schedule and raised checked baggage fees by $10 on first and second bags and $50 on the third bag. The airline cited soaring jet fuel costs as the direct reason for both moves.
The South Korean carrier cut 22 flights between April and July 2026 in direct response to the fuel cost spike. Routes between Korea and long-haul destinations are most affected.
The group raised long-haul ticket prices to offset its fuel bill, with cabin fares across the group increasing by 50 euros per round trip. This affects travellers on Lufthansa, Swiss, Austrian, and Brussels Airlines, all of which operate under the Lufthansa umbrella.
Philippine Airlines acknowledged that the sharp rise in fuel prices was among its top concerns and said it would continue reviewing its pricing and route strategy to reduce the impact on the airline and its passengers.
At least one major Chinese carrier raised domestic fuel surcharges starting April 5, with a 60 yuan (approximately $11 CAD) surcharge on flights under 800 km and a 120 yuan surcharge on longer domestic routes.
United slashed its 2026 profit forecast, pushing the lower end of its guidance into loss territory, and warned that its jet fuel bill would increase by more than $4 billion this year. The airline also raised checked baggage fees by $10 on first and second bags and $150 on the third bag on domestic and short-haul international routes, and trimmed certain economy passenger perks.
| Airline | Response | Impact on Travellers |
|---|---|---|
| Air Canada | Cut 4 daily NYC flights (June 1 to Oct 25) | Fewer Toronto-NYC options, higher prices |
| WestJet | 6% capacity cut May to October | Reduced Caribbean and Europe routes |
| Delta | 3.5% capacity cut + $10 bag fee hike | Higher fees on checked bags |
| United Airlines | $4B+ fuel hit, baggage fees up $10 to $150 | Forecast loss, significantly higher bag fees |
| Air France-KLM | 160 flights cut, +50 euros per round trip | Less European availability, pricier fares |
| AirAsia Group | 10% flight cuts, 20% fuel surcharge | Higher fares across Southeast Asia |
| Lufthansa Group | Long-haul fares up 50 euros per round trip | Pricier transatlantic and long-haul tickets |
| Akasa Air | Fuel surcharge of $2 to $14 CAD per flight | Added cost on India domestic and intl routes |
This is the question on every traveller's mind. The honest answer is: not quickly, and possibly not fully.
Airlines have historically used fuel price spikes as an opportunity to reset their base fares to a higher level. Even when fuel costs eventually ease, carriers have been slow to reduce ticket prices proportionally. With Spirit Airlines permanently shut down and several budget carriers trimming capacity, there is less competitive pressure pushing fares down than there was even two years ago.
Several airlines have already withdrawn their full-year profit forecasts because they genuinely cannot predict where fuel prices will land. That uncertainty alone tends to keep fares elevated, since airlines price for risk when the future is unclear.
Expect summer 2026 to be expensive. Shoulder season in September and October may offer some relief, but a return to 2024 fare levels is unlikely in the near term.
Book sooner rather than later. With capacity being cut across the board, available seats are shrinking. Waiting to find a deal this summer is a riskier strategy than usual.
Pack lighter to avoid baggage fees. United and Delta have both raised bag fees. Fitting into a carry-on saves you $10 to $30 per flight right now and more if airlines continue to raise fees.
Check alternate airports. With Air Canada cutting Toronto-JFK flights, compare prices through Buffalo, Hamilton, or even Montreal to find routes that have not yet been reduced.
Use credit card travel insurance. With airlines pulling forecasts and suspending routes, travel disruption is more likely than usual. Check whether your credit card covers trip cancellation and delays.
Consider fall travel instead. If your trip is flexible, September and October flights are significantly cheaper than peak summer and less affected by the capacity cuts announced so far.