Canada’s flagship airline announced Friday it will halt flights to John F. Kennedy International Airport for almost five months this summer due to skyrocketing jet fuel expenses caused by the ongoing Iranian conflict.
The Montreal-headquartered carrier revealed that routes connecting Toronto and Montreal to JFK will be discontinued starting June 1, with service not resuming until October 25. However, flights to the New York area’s other major airports, LaGuardia and Newark, will remain operational.
The airline stated it plans to contact affected passengers to provide alternative travel arrangements.
“As 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,” a company representative explained Friday.
Industry data from Argus Media shows jet fuel prices hit $4.32 per gallon Thursday, a dramatic increase from $2.50 per gallon recorded the day before Iranian hostilities began.
Oil markets saw significant relief Friday, dropping over 10% after Iran announced the reopening of the Strait of Hormuz to commercial oil tankers transporting petroleum from the Persian Gulf to global markets.
Aviation fuel and workforce expenses represent airlines’ biggest annual operating costs. Delta Air Lines reported earlier this month that elevated fuel prices will increase their second-quarter expenses by $2 billion. Multiple carriers including JetBlue and United Airlines have implemented higher baggage fees to combat rising fuel expenses, while others are reducing flight schedules.
During an exclusive interview with the Associated Press Thursday, International Energy Agency Director Fatih Birol warned that Europe has “maybe six weeks” of jet fuel reserves remaining and characterized the situation as the world’s “largest energy crisis.”
