Ottawa: Air Canada has announced it will suspend service on several routes to the United States due to soaring jet fuel costs.
According to a statement from Canada’s largest carrier Friday (local time), jet fuel prices have doubled since the start of the Iran conflict, rendering some routes and flights no longer economically feasible.
The suspensions affect a mix of transborder and domestic services. Service from Montreal and Toronto to New York’s John F. Kennedy International Airport will be paused from June 1 to October 25.
Air Canada will also suspend its Toronto-Salt Lake City route June 30, with a tentative return set for 2027.
The total impact on the airline’s planned capacity is roughly 1 per cent of annual available seat miles, the statement said.
Meanwhile, the United States Department of the Treasury has extended a waiver permitting the delivery and sale of sanctioned Russian oil already loaded onto vessels, pushing the deadline to May 16, according to a document released on its official website.
The earlier 30-day waiver had expired April 11.
The renewed license, issued Friday (local time), is part of the administration’s broader effort to stabilise global energy prices, which have surged amid the ongoing US-Israeli conflict with Iran.
The decision comes against the backdrop of several countries facing problems with the impact of rising energy costs and supply disruptions.
At the same time, the waiver continues to impose strict restrictions on dealings involving certain countries.
The move comes shortly after remarks by US Treasury Secretary Scott Bessent, who had indicated that Washington does not intend to continue such waivers indefinitely amid rising geopolitical tensions.
Meanwhile, global oil prices saw a sharp decline of around 9 per cent Friday, settling near $90 per barrel after Iran temporarily reopened the Strait of Hormuz, a key global energy transit route.
However, the broader conflict has already triggered what the International Energy Agency described as the worst disruption to global energy supplies in history.
The war, which entered its eighth week Saturday, has reportedly damaged more than 80 oil and gas facilities across West Asia.
