Major Airline Cancels All Flights to NYC's Busiest Airport
Air Canada will suspend service to New York's John F. Kennedy International Airport this summer as soaring jet fuel prices tied to the war in Iran force airlines to rein in less profitable routes.
Canada's flag carrier said Friday that flights from Toronto and Montreal to JFK will end June 1 and resume October 25. Service to the New York area's other major airports, LaGuardia and Newark Liberty International, will continue.
The Montreal‑based airline said it will contact affected customers with alternative travel options.
"As jet fuel prices have doubled since the start of the Iran conflict and some lower‑profitability routes and flights are no longer economic, we are making schedule adjustments accordingly," an Air Canada spokesperson said.
According to Argus Media, the average price of jet fuel reached $4.32 per gallon Thursday, up from $2.50 before fighting erupted in Iran. Although oil prices fell more than 10% on Friday after Iran said the Strait of Hormuz had reopened to commercial oil tankers, fuel costs remain sharply higher than earlier this year.
Fuel and labor typically represent airlines' largest operating expenses. Several carriers have warned that higher fuel costs will significantly affect earnings. Delta Air Lines said this month that higher fuel prices are expected to add about $2 billion to its second‑quarter expenses.
Other airlines are also adjusting to the pressure. Carriers including JetBlue and United Airlines have raised baggage fees, while others are reducing service on select routes.
In an exclusive interview with The Associated Press on Thursday, International Energy Agency Executive Director Fatih Birol warned that Europe may have "maybe six weeks" of jet fuel supplies remaining. He said the global economy is facing its "largest energy crisis," driven by disruptions linked to the conflict in the Middle East.
The war has strained global energy markets, leaving airlines increasingly vulnerable to sudden spikes in fuel prices.
Iran War's Ripple Effects Reach Airline Routes
Air Canada's decision underscores how quickly the war in Iran has rippled from energy markets into airline schedules, even on heavily traveled North American routes. Airlines typically plan summer flying months in advance, but sharp swings in fuel prices can force carriers to reassess routes that were already operating on thin margins, particularly when demand and yields fail to keep pace with costs.
Jet fuel, which is refined from crude oil, is especially sensitive to supply disruptions. Even brief interruptions to shipping or refining can push fuel prices sharply higher, leaving airlines exposed to sudden cost spikes that are difficult to hedge in real time.
Oil Prices Fall - but Fuel Risks Remain
Oil prices dropped sharply Friday after Iran said the Strait of Hormuz was open again to commercial tankers, triggering a relief rally across global markets. Benchmark U.S. crude and Brent both fell more than 10% following the announcement, easing immediate fears of a prolonged supply shock.
Still, prices remained well above prewar levels, reflecting investor caution over whether traffic through the strait will continue uninterrupted. Analysts have warned that any renewed disruption could quickly tighten supplies again, especially for refined products such as jet fuel, which often lag changes in crude prices.
Jet Fuel Shortages Pressure Airlines Worldwide
Energy officials have cautioned that the consequences of the conflict extend beyond daily oil price movements. Earlier in the war, International Energy Agency Executive Director Fatih Birol warned that Europe had "maybe six weeks" of remaining jet fuel supplies and said prolonged disruptions could lead to widespread flight cancellations.
Those concerns have weighed heavily on airlines heading into the peak summer travel season, when fuel consumption typically surges. Even with crude prices retreating, jet fuel availability and refining capacity remain critical risk factors for carriers operating long‑haul and transborder routes.
Airlines Pass Costs to Travelers
Airlines across North America have begun shifting higher fuel costs onto customers. United Airlines, JetBlue and other carriers have raised checked‑bag fees, while Delta Air Lines said the surge in fuel prices would add roughly $2 billion to its second‑quarter costs and has signaled a pullback in growth plans.
Industry analysts say baggage fees, reduced capacity and higher fares are often among the first levers airlines pull when fuel costs rise abruptly, especially when demand remains strong.
What Air Canada's JFK Suspension Signals
For Air Canada, suspending service to JFK allows the carrier to concentrate New York traffic into LaGuardia and Newark, where it will continue flying. The move reflects a broader airline strategy: preserve core networks while trimming routes that become harder to justify when operating costs spike.
The suspension also highlights how geopolitical shocks can reshape travel during peak season - not only by raising prices, but by determining which markets remain viable until fuel supplies and costs stabilize.
Reporting by the Associated Press contributed to this article.
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This story was originally published April 17, 2026 at 1:15 PM.