Airfares up in March for the first time in nearly two years as jet fuel prices rise
Summarize this article with:
A worker fuels an Air Canada jet at DFW International Airport in Grapevine, Texas on April 14, 2026. Photo by AP Photo/LM OteroArticle contentAirfares in Canada increased for the first time since June 2024, according to Statistics Canada’s consumer price index (CPI) data for March.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe CPI data released on Monday shows airfares were up 2.9 per cent year over year last month. From February 2026, the monthly increase was 4.9 per cent, higher than the 1.2 per cent monthly increase in March 2025.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentNational Bank analyst Cameron Doerksen said in a note to clients on Monday that much of the increase was due to the spike in jet fuel prices after the U.S.-Israel conflict with Iran disrupted tanker traffic through the Strait of Hormuz, driving energy prices upward.Article contentArticle content“With jet fuel prices spiking significantly since the end of February, much of the increase is likely being driven by airlines passing on some of the increased costs through higher airfares, with most airlines having already implemented fuel surcharges,” he said.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentDoerksen expects fares will remain elevated in the short-term with Air Canada, the country’s largest airline, indicating that booking demand has remained strong even in the face of higher fares.Article content“If high fuel prices persist, however, the ability to keep fares high will depend on the strength of demand, noting that higher airfares typically lead to some demand destruction,” he wrote.Article contentAir Canada has said it was suspending operations at John F.
Kennedy International Airport in New York City as surging fuel costs have made “some lower profitability routes” no longer economically viable. The flights will be eliminated for five months over the height of the summer travel season.Article contentIn an email to the National Post on Friday, Peter Fitzpatrick, Air Canada’s manager of corporate communications, said there had been no imminent impact on operations due to the shortage of jet fuel.Article contentArticle content“That said, jet fuel prices have doubled since the start of the Iran conflict and some lower profitability routes and flights are no longer economic, and we are making schedule adjustments accordingly,” he said.Article contentRead More Canada's inflation rate jumps to 2.4%, fuelled by gas price shock Bank of Canada could be looking at rate cuts if it weren't for Iran, says economist Article contentIn early March, Air Transat’s chief executive Annick Guérard said the carrier has increased fuel surcharges on Europe, blended into the total price. The airline is currently raising fares on peak travel dates and routes where they “see less competition and we have more flexibility,” Guérard said during the company’s earnings call on March 11.Article content• Email: dpaglinawan@postmedia.comArticle contentTrending Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet News Kuwait declares force majeure on oil shipments on Hormuz halt Oil & Gas Canada's inflation rate jumps to 2.4%, fuelled by gas price shock News Thanks to government policy, your 60/40 portfolio may not cut it under stress Investor Garry Marr: Canada's REIT sector is shrinking fast. For investors, that might be a good thing Real Estate Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet News Kuwait declares force majeure on oil shipments on Hormuz halt Oil & Gas Canada's inflation rate jumps to 2.4%, fuelled by gas price shock News Thanks to government policy, your 60/40 portfolio may not cut it under stress Investor Garry Marr: Canada's REIT sector is shrinking fast. For investors, that might be a good thing Real Estate