Air Transat: Fuel Costs Add $70M Pressure

Transat A.T. Inc. says soaring aviation fuel prices tied to the prolonged closure of the Strait of Hormuz are continuing to drive up operating costs across the airline industry, with the company absorbing approximately $70 million in additional fuel expenses in March and April alone.

The company said the increase represents a jump of more than 75% compared to the same period in 2025, even after taking existing fuel hedging measures into account.

To help offset the impact, Transat has introduced fuel surcharges on new bookings and reduced planned capacity by approximately six percent between May and October 2026. The company said similar measures are being adopted by airlines globally.

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Transat noted that fuel surcharges have so far had only a limited impact on revenues because many bookings for March and April were made before the fuel crisis escalated. The company added that surcharges are expected to only partially offset rising fuel costs in the months ahead.

“The significant current volatility in aviation fuel prices is occurring amid exceptional circumstances affecting the industry on a global scale,” said Annick Guérard.

“In addition to the cancellation of our flight program to Cuba until November 2026, the impact on our costs is material and could persist if the situation, which is beyond our control, were to continue. Despite the measures we are implementing, we are not able to fully eliminate its effects. In this context, we continue to closely monitor developments and adapt our actions accordingly.”

The additional costs will be reflected in the company’s quarterly results for the period ending April 30, 2026, expected to be released in mid-June.

Air Transat officially launched its new non-stop service between Ottawa and London Gatwick Airport, highlighting the balancing act airlines continue to face between network growth and mounting operational pressures.

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