Some Airlines Reduce Fuel Surcharges as Oil Falls, While Others Hold Steady

 

Some Canadian airlines are scaling back fuel surcharges as fuel prices fall, while others are holding steady for now.

WestJet Airlines says it has reduced its levy on companion vouchers to $40 from $60 per round trip or one-way fare.

Porter Airlines has cut the fuel surcharge for new reward flight bookings by half to $20, and says it will make further adjustments as conditions change.

Meanwhile, Air Canada is managing fuel costs through its regular fare structure, though a surcharge remains in effect on ground packages offered through its vacations business.

Flair Airlines is making no changes, but says it’s monitoring the situation and will adjust prices “as appropriate.”

Crude oil prices have fallen back to around the US$70 per barrel mark since the U.S. and Iran reached a framework agreement to end a war that has embroiled much of the region since late February.

That’s close to where oil prices were before the war began.

Crude surged well above US$100 per barrel at some points this spring as tanker traffic was all but cut off through the Strait of Hormuz, a vital waterway through which one fifth of the world’s crude supply moves.

Even amid ongoing uncertainty over safe passage through the Persian Gulf, spot rates for aviation fuel have started to decrease.

The average price of jet fuel in North America dropped 23 per cent last week versus a month earlier, according to the International Air Transport Association. However, they remain nearly a third higher than a year ago.

This report by The Canadian Press was first published June 25, 2026.

Companies in this story: (TSX:AC)

Lauren Krugel, The Canadian Press

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