by Jen Mallia
Last updated: 11:30 AM ET, Fri March 13, 2026
Following the U.S.-Israeli attack on Iran, the cost of oil has skyrocketed: from US$99.40 to US$157.41 per barrel — a jump of 58.4 percent — between Feb. 27 and March 6, 2026.
As the price of oil goes up, so too does the price of jet fuel. It’s a cost that’s already being reflected in ticket prices.
“Pricing has been and continues to be adjusted to reflect these higher fuel costs while delivering the reliable service and network Canadians depend on,” an Air Canada spokesperson told the Financial Times.
WestJet echoed the sentiment, telling CBC News that the situation in Iran "has already made operating flights more expensive ... based on this, it’s likely further pricing adjustments may be needed."
“We have increased fuel surcharges on Europe. However, this is blended in the total price,” Annick Guérard, president and chief executive officer at Air Transat stated at the Transat A.T. Inc. earnings call this week. The increase amounts to $25 on flights originating from Canada and €15 (about $23) on flight segments departing from Europe.
“What we’re also doing is currently raising fares on peak travel dates and routes where we see less competition, where we have more flexibility.”
The Air Canada spokesperson said the situation is “still highly volatile and unpredictable,” but travel demand remains resilient.
The airlines will have to strike a balance on pricing. As jet fuel is a major operating expense for airlines, surcharges are inevitable. However, they can’t hike prices too much without causing travellers to balk and decide not to fly.
“The consumer has to buy the ticket — and if the price gets too crazy, demand will shut down,” he said. “It’s a double whammy for those airlines that are really in financial straits.” John Gradek, an aviation management lecturer at McGill University, told the Financial Times
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