Some Canadian airlines are scaling back fuel surcharges as fuel prices fall, while others are holding steady for now.
WestJet Airlines says it has reduced its levy on companion vouchers to $40 from $60 per round trip or one-way fare. The Calgary-based carrier joined Porter Airlines, which earlier this week cut the fuel surcharge for new reward flight bookings by half to $20, and says it will make further adjustments as conditions change.
Meanwhile, Air Canada is managing fuel costs through its regular fare structure, though a surcharge remains in effect on ground packages offered through Air Canada Vacations.
Flair Airlines is making no changes, but says it’s monitoring the situation and will adjust prices “as appropriate.”
Air Transat told Travel Industry Today: “At this time, Air Transat has not made any changes to its fuel surcharges. While market conditions have evolved in recent weeks, the geopolitical situation remains fluid and aviation fuel supply chains continue to be complex and volatile. We continue to monitor the situation closely.”
Crude oil prices have fallen back to around the US$70 per barrel mark since the U.S. and Iran reached a framework agreement to end a war that has embroiled much of the region since late February.
That’s close to where oil prices were before the war began.
Crude surged well above US$100 per barrel at some points this spring as tanker traffic was all but cut off through the Strait of Hormuz, a vital waterway through which one fifth of the world’s crude supply moves.
Even amid ongoing uncertainty over safe passage through the Persian Gulf, spot rates for aviation fuel have started to decrease.
The average price of jet fuel in North America dropped 23% last week versus a month earlier, according to the International Air Transport Association. However, they remain nearly a third higher than a year ago.
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