Air Transat planes at Toronto Pearson International Airport in 2020. The airline says fuel surcharges have only partly offset higher costs.Christopher Katsarov/The Globe and Mail
Transat AT Inc. TRZ-T says high jet fuel prices added $70-million in additional costs for March and April compared with the same months last year.
The travel company says fuel surcharges have only marginally offset the higher costs because a large portion of its bookings were made before the crisis caused by the attacks on Iran by the U.S. and Israel began.
Fuel prices have soared with the closing of the Strait of Hormuz due to the conflict in the Middle East.
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In addition to fuel surcharges on new bookings, Transat says it has reduced its planned capacity for later this year by about 6 per cent from May to October.
The company has also suspended service to Cuba until November amid a U.S. energy blockade of the island.
Transat chief executive Annick Guérard says despite the steps the company is taking, it’s not able to fully mitigate the effects and it continues to closely monitor developments and will adapt accordingly.