Air Transat plans to reduce flight frequency on some European and Caribbean routes as the Iran war drives jet fuel prices up.Ryan Remiorz/The Canadian Press
Air Transat TRZ-T has slashed its capacity by 6 per cent between May and October amid high jet-fuel costs caused by the war in the Mideast.
The Montreal-based airline, operated by Transat AT, joins WestJet and Air Canada by changing its schedule to eliminate or consolidate flights made less profitable by the fuel crisis that has gripped the industry since the conflict started on Feb. 28.
Air Transat said it will reduce flight frequency on some European and Caribbean routes while extending the suspension of Cuban flights until October, blaming “the unprecedented aviation-fuel crisis and exceptional volatility in energy markets.” The airline did not provide details.
“The recent volatility in aviation-fuel prices reflects an exceptional environment affecting the entire sector,” said Annick Guérard, Transat’s chief executive officer. Additional measures might be implemented, she said.
Air Transat previously said less than half its fuel consumption for the summer was hedged at lower prices, signalling that its protection from the recent spike is limited. Transat and other carriers have raised airfares and fees in response to higher fuel costs.
Air Transat spent $593-million on fuel in 2025, its biggest expense.
Jet-fuel prices have doubled since the war began, airlines say, as Iran has effectively closed the Strait of Hormuz. More than 20 per cent of global oil supplies and a significant amount of jet fuel for Europe moves through Hormuz. In addition, the U.S. has blockaded Cuba and caused a shortage of jet fuel and other necessities.
The International Energy Agency said last week that Europe could be six weeks from a jet-fuel shortage caused by the loss of Mideast supplies.
KLM and Lufthansa have announced reduced schedules in response to the soaring prices and supply constraints.
WestJet Airlines said on Monday that it will reduce seat capacity in June by 5.5 per cent. It previously said available seats in April and May would be reduced by 1 per cent and 3 per cent, respectively.
Air Canada has responded to the fuel spike by suspending flights between Fort McMurray and Vancouver, and Yellowknife and Toronto, as well as flights to New York’s John F. Kennedy Airport from Montreal and Toronto. The Salt Lake City-Toronto route is also halted.
“Jet-fuel prices have doubled since the start of the Iran conflict, affecting some lower profitability routes and flights, which now are no longer economically feasible,” the airline said.
Air Canada spent $4.7-billion on fuel in 2025, second only to wage, salary and benefits expenses, which were $5-billion.
Although Canadian jet-fuel refiners supply about 80 per cent of domestic needs, airlines pay global prices for fuel and could face shortages overseas.