Canadian Airlines Add Fees, Cut Flights as Oil Prices Climb

Image: Plane on taxiway (Photo Credit: Adobe Stock)
Image: Plane on taxiway (Photo Credit: Adobe Stock)
Natasha Lair
by Natasha Lair
Last updated: 10:00 AM ET, Tue April 7, 2026

Canadian airlines are adding fuel surcharges and adjusting operations as rising oil prices tied to global supply disruptions ripple across the industry.

In a statement, The WestJet Group said the closure of the Strait of Hormuz has strained global oil supplies, driving up both oil and jet fuel prices, adding that fuel typically accounts for about 20% of an airline’s operating costs.

According to CTV News, airlines in Canada are adding temporary surcharges and adjusting fees as fuel prices surge, with some travellers already seeing added charges tied to bookings and rewards programs.

WestJet introduces new surcharges, adjusts capacity

Beginning April 8, WestJet will introduce a temporary CAD$60 fuel surcharge on all bookings made with a WestJet Rewards companion voucher. The fee will appear in the “Other ATC” portion of bookings.

“Fuel is the largest contributor to airline operating costs, and a temporary surcharge helps us manage the recent surge in fuel prices,” the company said.

“While airfares can be adjusted and have greater flexibility in pricing, the nature of our companion vouchers does not allow for this same flexibility.”

The airline said it will continue to assess the surcharge and adjust it as conditions change.

Additional surcharges are also being applied to vacation packages sold through Sunwing Vacations and Vacances WestJet Québec.

A CAD$50 per person fuel surcharge will apply to all new bookings made as of April 14. Existing bookings will not be affected. The fee will be included in taxes and fees at the time of purchase.

WestJet also said it is consolidating flights on lower-demand routes as part of its near-term response to rising costs.

Surcharges spread across Canadian carriers

Other airlines are taking similar steps.

As of Monday, Air Canada Vacations is adding a CAD$50 fuel surcharge to select vacation packages, particularly its Sun Destination packages. The fee does not apply to flight-only bookings.

Meanwhile, Porter Airlines has been charging a CAD$40 temporary fuel surcharge per flight on all VIPorter flight redemptions since March 23.

In a statement to CityNews, the airline said it plans to remove the fee once fuel prices stabilize.

“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,” the statement read.

“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.”

Flair Airlines has also implemented a surcharge as of Monday due to fuel costs.

“The surcharge varies by route and is clearly displayed during the booking process,” a spokesperson told CityNews, though the airline did not specify an exact amount or range.

Across the industry, airlines are also reducing flights and modifying schedules as fuel prices remain volatile.

Airfares and vacation package pricing are expected to continue fluctuating based on operating costs and demand.

“We appreciate our guests’ understanding as we navigate these unprecedented cost pressures and remain committed to providing exceptional travel experiences to our guests,” WestJet said.

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