Air Canada scraps key US routes as fuel costs surge amid Iran war

Air Canada announced on Friday that the airline is suspending select U.S.-bound flights as jet fuel prices continue to skyrocket in the wake of the Iran war. 

The cuts, set to take effect this summer and last at least five months, will impact all service to John F. Kennedy International Airport (JFK) in New York City and the Salt Lake City International Airport (SLC) in Utah, the airline said. 

“As we regularly do, we monitor and review our network to ensure that routes are meeting profitability targets,” the air carrier said in a statement. 

“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. Schedule adjustments including some frequency reductions are being made in response.” 

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Affected customers will be contacted with alternative travel options, the Canadian carrier said. 

The airline specified that JFK will not see service from June 1 through Oct. 25, 2026, from its two hubs in Montreal and Toronto.

The move could reflect a consolidation strategy, as routes to nearby Newark (EWR) and LaGuardia (LGA) airports remain unaffected, according to the release.

Air Canada operates more heavily out of those two airports than JFK, its website shows, with local outlet CTV News reporting roughly 34 daily departures from across Canada.

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Flights to Salt Lake City, typically served only from Toronto Pearson (YYZ), will be suspended beginning June 30, with service expected to resume in 2027, creating a roughly six-month gap. 

The airline also said two domestic routes and one international service were affected.

Routes between Vancouver and Fort McMurray will be suspended on May 28, while service between Toronto and Yellowknife will be halted on Aug. 30.

Both Fort McMurray and Yellowknife, which are considered lower-volume markets, were not given a resumption date.

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The airline was also planning to launch service between Montreal and Guadalajara, Mexico, which has now been indefinitely suspended.

Air Canada said the changes represent only a small portion of its global operations, affecting about 1% of its total annual flying capacity for 2026. 

Jet fuel prices increased to $3.79 on Friday, more than a 50% increase since the day before the Iran war broke out on Feb 27, according to Airlines for America. 

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Several U.S. airlines have also adopted new cost-cutting measures to offset rising jet fuel prices, with JetBlue, Southwest, American and United Airlines increasing checked bag fees.

FOX Business reached out to Air Canada for more information.