The rising cost of fuel due to the ongoing U.S.-Israel led war in Iran is not only impacting drivers, but will soon affect air travellers as well.
Calgary-based WestJet says it will introduce a temporary surcharge of $60 for some bookings starting April 8.
In an email statement to CityNews, WestJet said the surcharge is applicable to all booking made with a companion voucher. The charge will be reflected in the “other ATC” portion of the booking.
“Fuel is the largest contributor to airline operating costs, and a temporary surcharge helps us manage the recent surge in fuel prices. While airfares can be adjusted and have greater flexibility in pricing, the nature of our companion vouchers does not allow for this same flexibility,” read the statement.
The airline says they will assess and adjust the surcharge “as conditions allow.”
In an attempt to further manage fuel costs, the airline says it is “consolidating flights on lower demand routes and adjusting the travel period for seasonal offerings.”
“We have reduced capacity by approximately one per cent in April and three per cent in May. Most guests impacted by these changes have been provided re-accommodation options within the same day as their original departure,” they said.
As of March 23, Toronto-based Porter Airlines has been charging a $40 temporary fuel surcharge per flight on all VIPorter flight redemptions.
In a statement, the airline told CityNews that once oil prices return to previous levels, they plan to remove the extra fee.
“We want to be transparent about why this change is necessary. Fuel represents the highest cost of airline operations and this surcharge allows us to maintain the number of points required for redemption. Redemption bookings are a very small percentage of overall bookings,” read the statement.
“There is no surcharge for standard bookings. Base fares adjust to account for variable fuel prices on a route-by-route basis. Any changes vary by region and are included in the total price customers always see.”
Air Canada says they currently do not have a fuel surcharge on tickets and are “managing fuel costs through our regular fare structure.”
However there is a $50 surcharge per passenger on new bookings of Air Canada Vacation packages with a flight component. The airline says this charge is applied to vacation packages only and they tell CityNews it “mostly reflects the increased cost of ground packages.”
Over Easter weekend the price of gas jumped by 7 cents to $1.85 — the highest it has been in four years. Diesel prices also hit record levels across the country.
Oil prices started climbing further following U.S. President Donald Trump’s speech last Wednesday in which he said U.S. forces will spend the next few weeks bombing Iran “back to the Stone Ages.”
Oil markets have been volatile as they react to the war and the subsequent halting of oil shipments through the Strait of Hormuz since the conflict began on Feb. 28. Iran has threatened to attack any vessels trying to cross through the critical waterway in retaliation to U.S.-Israeli strikes.
