Air Transat is the latest Canadian carrier to trim its flight schedule as skyrocketing jet fuel costs continue to squeeze airline margins across the country.
Transat A.T. Inc., the Montreal-based parent company of Air Transat, announced it will reduce flight frequency on several European and Caribbean routes during the busy summer travel season. The airline is also extending its suspension of service to Cuba through October—a move that accounts for the majority of the capacity cuts.
The changes represent a 6 per cent overall reduction in capacity between May and October, a significant pullback during peak travel months when Canadian families typically book vacations abroad.
Middle East Tensions Drive Fuel Price Spike
The decision reflects a crisis gripping the global aviation industry. Since U.S. and Israeli strikes on Iran in late February disrupted shipping through the critical Strait of Hormuz, jet fuel prices have roughly doubled compared to a year ago, according to the International Air Transport Association.
"The recent volatility in aviation fuel prices reflects an exceptional environment affecting the entire sector," said Air Transat CEO Annick Guerard in a statement. "We are closely monitoring the situation, as cost pressures continue to be felt across the industry."
Despite the cutbacks, the airline said demand for travel remains strong and that affected customers will be contacted directly with alternative flight options.
Canadian Airlines Adopt Triage Strategy
Air Transat's move follows similar announcements from other major Canadian carriers. WestJet has already announced capacity reductions of 1 per cent in April, 3 per cent in May, and nearly 6 per cent in June, though it has not eliminated any full routes. Air Canada suspended six unprofitable routes last week.
Porter Airlines told CBC News it is not planning to cut capacity this summer, though the carrier is closely monitoring the volatile fuel environment.
To offset rising costs, many Canadian airlines—including Air Transat—have introduced fuel surcharges on tickets, passing at least some of the burden to passengers.
Global Airlines Take Drastic Action
The disruption is not limited to Canadian carriers. In Europe, Lufthansa cancelled 20,000 short-haul flights through October, reducing summer capacity by 1 per cent and saving an estimated 40,000 tonnes of jet fuel. Major carriers including KLM-Air France, Delta Air Lines, and others have also slashed schedules or raised prices.
Industry experts have warned that fuel shortages and supply disruptions could cause significant travel disruptions across Europe and beyond throughout the summer season.
This report is based on information from CBC Business.