The ongoing U.S.-Israeli war with Iran has triggered a massive shockwave across the global aviation sector. Following severe restrictions and partial blockades of the Strait of Hormuz—a vital oil transit corridor—average global jet fuel prices have surged from $2.50 to $4.32 per gallon.
Air Canada officially announced on Friday, April 17, 2026, that it is suspending six domestic and cross-border flight routes. The carrier cited the ongoing global fuel crisis, stating the affected routes are no longer economically feasible under the current overheads.
Toronto and Montreal Network Reductions
The most prominent network cuts involve flights originating from Toronto and Montreal bound for New York’s John F. Kennedy International Airport. These specific routes are suspended from June 1 to October 25. Additional domestic cuts include Fort McMurray to Vancouver, which halts effective May 28, and Yellowknife to Toronto, ceasing August 30. A cross-border route from Salt Lake City to Toronto is suspended effective June 30. A planned new route from Guadalajara to Montreal is also canceled.
Air Canada maintains the reductions account for roughly 1% of its annual available seat miles. The airline will continue to service the New York area with 34 daily flights divided between LaGuardia and Newark airports. A report by CBC verified the six specific suspended routes, including the Yellowknife and Fort McMurray lines. The unprecedented fuel spike is forcing similar operational revisions across the North American business industry.
Competitors Implement Surcharges Amid Losses
Canadian carriers WestJet, Porter Airlines, and Air Transat confirmed plans to raise base fares or implement temporary fuel surcharges to offset the deficit. The financial damage extends directly to U.S. carriers. Delta Air Lines projected the higher fuel prices will add an additional $2 billion to its second-quarter costs, according to a financial breakdown from CBS News. A Global News dispatch validated the specific suspension of Air Canada flights to JFK from Toronto and Montreal, along with the competitor surcharges.
How the Strait of Hormuz Blockade is Redrawing North American Aviation Networks
International Energy Agency (IEA) Director Fatih Birol explicitly categorized the current supply chain squeeze as the “largest energy crisis we have ever faced in history.” Birol warned that some European airports hold only a six-week supply of jet fuel.
Aviation experts confirm this marks a permanent structural shift in network planning. Airlines are abandoning marginal, lower-profitability routes entirely due to the extreme cost and physical scarcity of fuel, overriding baseline consumer travel demand. The consolidation prioritizes high-yield hub traffic over regional connectivity.