Air Travel Crisis in Canada Worsens Amid Jet Fuel Shortage 

April 17, 2026 Team Contributor

A tightening global jet fuel supply is beginning to push up airfares for Canadian travellers, with airlines warning that cost pressures are unlikely to ease ahead of the busy summer season. 

The International Energy Agency has cautioned that fuel markets are tightening due to geopolitical disruptions, including tensions involving Iran, which have constrained refining and distribution flows across Europe.

Several European hubs are already reporting lower jet fuel inventories, forcing airlines to secure supplies at elevated prices. 

Additional reporting highlights how the air travel crisis is deepening across Europe, with strained supply chains driving up Canadian airline operating costs and limiting flexibility in fuel procurement. 

“Every passing day that the Strait of Hormuz remains shut, Europe is edging closer to supply shortages,” said Amaar Khan, head of European jet fuel pricing at Argus Media, noting that “the strait accounts for around 40% of Europe’s jet fuel imports, but no jet fuel has passed” since the war began. 

For Canadian carriers such as Air Canada and WestJet, the impact is structural. Fuel typically accounts for between 20% and 30% of operating expenses, meaning even modest price increases can quickly translate into higher fares. Jet fuel prices have shown recent upward pressure in global markets, according to industry reporting. 

Air Canada has consistently noted in its financial disclosures that fuel remains its largest variable expense, fluctuating with global market conditions and geopolitical factors. WestJet has similarly indicated it is managing capacity and network planning carefully in response to ongoing volatility. 

While Canada has not yet reported widespread cancellations linked directly to fuel shortages, airlines are becoming more cautious about long-haul expansion. Transatlantic routes—key for both tourism and business travel—are particularly exposed due to their higher fuel consumption. 

The broader concern lies with tourism. Rising airline fuel costs could dampen inbound travel to Canada just as the sector continues its post-pandemic recovery. Domestic travellers are also likely to adjust, opting for shorter or fewer trips as prices rise. 

Travellers are already beginning to change how they plan. A Toronto-based traveller said he started monitoring flights to Japan earlier than usual amid uncertainty over rising fares. “We started this a bit earlier because we’re not too sure what could happen later on with ticket prices,” he said, adding that prices “could go higher” in the months ahead.  

Globally, the strain is more visible. In Cuba, authorities have already warned airlines of imminent jet fuel shortages, underscoring how uneven supply conditions have become. 

For now, Canada remains insulated from the most severe disruptions—but the direction is clear: tighter supply, higher costs, and a more expensive travel season ahead. 

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