Jul 20, 2026
If you postponed a trip this year hoping a drop in fuel prices would eventually show up as a cheaper plane ticket, you may want to stop waiting.
On an earnings call on July 10, Delta Air Lines CEO Ed Bastian told investors that today’s higher fares aren’t a temporary reaction to fuel costs, and won’t fall just because oil prices calm down. Instead, he said, they reflect a structural reset in how airlines price their tickets.
Advertisement
That’s a notable admission from the head of one of the world’s largest airlines. But for Canadian travellers, the more useful question isn’t what’s happening at a U.S. carrier — it’s whether the same disconnect between fuel costs and fares is playing out here. The short answer is yes, and the numbers back it up.
Thanks for subscribing!
The best of Money.ca delivered weekly.
By signing up, you accept Money.ca Terms of Use, Subscription Agreement, and Privacy Policy.
What Bastian told investors
Delta booked a record revenue of US$17.7 billion for the quarter, up 14%, and a pre-tax profit of US$1.4 billion (~C$2 billion) — even while absorbing a US$4.4 billion (~C$6.2 billion) fuel bill. That figure is the company’s highest quarterly fuel expense on record and 77% above the same quarter a year earlier.
Bastian’s case to investors was that the industry has learned to pass fuel costs through to fares quickly, and that pattern doesn’t reverse because fuel prices drop. The goal now, he said, is finding ways to secure higher revenues, not higher market share.
Don't leave points on the table. Compare Canada's top travel rewards programs today to see which one gets you to your destination faster.
Must Read
- Warren Buffett used these 4 solid, repeatable money rules to turn $9,800 into a $150B fortune. Here’s how to apply them to your own life
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- Three in four Canadians say their insurance premiums have increased in the last two years. Compare 20+ quotes on Rates.ca and save up to 20% when you bundle home and auto
Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Why the same disconnect shows up in Canada
Canadian travellers don’t need to look south of the border for proof that fuel costs and fares don’t move in tandem. Statistics Canada’s most recent airfare data recorded a 7.4% year-over-year rebound in May, after falling 1.7% in April, as airlines experience higher operational costs.
The trigger was the war in Iran, which caused jet fuel prices to spike more than double year-over-year, even after a fragile ceasefire took hold, according to the International Air Transport Association (IATA).
Advertisement
Air Canada raised fares, tacked on fuel surcharges of C$25 to C$60 a ticket on some routes, and suspended a half-dozen others that had become unprofitable at current fuel prices. On the airline’s first-quarter earnings call, chief commercial officer Mark Galardo said Air Canada was one of the first airlines to implement fare increases as the crisis unfolded.
In the midst of all this economic shock, Air Canada posted record first-quarter operating revenue of C$5.8 billion, up 11% year-over-year, and net income of C$48 million, reversing a loss from one year earlier. Even so, the airline’s own guidance assumes it will offset only 50% to 60% of its added fuel costs through fare and fee increases.
What this means for your money
If you’re waiting for a cheaper barrel of oil to show up as a lower-cost seat, both the U.S. and Canadian evidence says don’t hold your breath. Fares may still fall, but typically when travel demand drops, not because fuel costs ease.
A TD Bank survey found that about 35% of respondents plan to spend less this summer while 44% say spikes in fuel costs are forcing them to cut back on summer travel. That’s almost half of Canadians changing their plans over this fuel cost dynamic.
Lessons for Canadian travellers
- Don’t wait for fuel headlines. A cheaper barrel of oil doesn’t reliably translate into a cheaper fare, so watch airfare data itself, not oil prices.
- Book flexible fares when you can. A changeable main-cabin fare can save you more over the life of a booking than chasing a fuel-price dip that may never reach your ticket.
- Fly off-peak. Shoulder-season routes and early-morning or late-night departures are still where to find the real discounts.
- Track Statistics Canada’s monthly airfare CPI figures if you want a genuine signal on where fares are headed, rather than guessing from oil-price headlines.
Bastian’s comments were aimed at Delta’s investors, not its passengers. But the takeaway holds on both sides of the border: This round of higher fares looks like it’s here to stay.
You May Also Like
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more and build wealth — here’s how it works
- Prioritize these 4 critical investments and watch your net worth skyrocket
- Focus on these 3 ‘magic numbers’ to become a millionaire — and only on these numbers. How do you stack up?
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
The most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. Subscribe now.
Godwin Oluponmile is a content specialist, SEO strategist and copywriter with seven years of expertise in finance, Web 3.0, B2B SaaS and technology. His work has been featured in publications such as Entrepreneur, HackerNoon, Blocktelegraph and Benzinga.
