Mar 20, 2026
If you’ve been putting off booking a flight when fares become cheaper, you may not want to hear the most recent news. The war in Iran is pushing jet fuel costs to levels not seen in years — and Canadian airlines are already passing those costs on to passengers.
The situation is moving fast, and constantly evolving. Here’s what’s happening, what it means for your travel plans and what you can do to keep costs down.
Why air travel suddenly got so much more expensive
Jet fuel is typically an airline’s single greatest operating expense. And right now, its price has gone through the roof.
Advertisement
According to the International Air Transport Association’s jet-fuel price tracker, the cost of fuel skyrocketed 58.4% in only one week, jumping from US$99.40 to US$157.41 a barrel between February 27 and March 6 — the days immediately following the U.S.’s and Israel’s attack on Iran (1). In response to the attack, shipping traffic has effectively shut down through the Strait of Hormuz, a narrow waterway that handles about one-fifth of the world’s oil shipments, according to Travelweek (2).
The ripple effect is already evident when it comes to Canadians looking to travel. Fuel accounts for about 30% of Air Canada’s total operating cost, according to John Gradek, an aviation management lecturer at McGill University. This means any spike in fuel prices hits the air carriers’ bottom lines immediately on every flight (3).
“I think what you’re seeing happening now is a volatility in jet fuel that hasn’t been seen in years,” Gradek told Global News (4).
Must Read
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- What's your worth? Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and that ‘anyone’ can do it
How Canadian airlines are responding
Air Canada, Air Transat and WestJet have all signalled that higher ticket prices are coming or have already arrived.
Air Transat has added a fuel surcharge of C$25 on flight segments departing from Canada and about C$23.50 segments departing from Europe, according to CBC News (5). The airline also raised fares on peak travel dates and routes with less competition.
Air Canada told CBC that pricing “has been and continues to be adjusted to reflect these higher fuel costs.” WestJet confirmed to Global News that the situation “has already made operating flights more expensive” and that further pricing adjustments are likely (6).
For Canadians flying internationally, the increases are expected to be steepest. Travel publication Open Jaw reported that if the conflict drags on, airlines may have to move beyond price increases to cutting marginal routes — or in extreme cases, grounding aircraft permanently (7).
Advertisement
And for those closely watching their travel budget, there’s a transparency issue to note. Airlines often fold fuel charges with other costs — like navigational and insurance fees, into general carrier surcharges — making it hard to know exactly how much of what you’re paying is fuel-related, according to Travelweek (8).
What travellers can do right now
You can’t control what happens in the Middle East, but you can make smarter choices about how and when you book. Here’s what experts suggest:
Book now if you’re travelling soon. Prices are expected to keep climbing as long as the conflict continues and fuel costs stay elevated. If you’re planning a summer trip to Europe, Gradek’s advice is direct: buy now (9).
Stay flexible. Even a small shift in your travel dates — or steering clear of peak summer weeks — can mean a meaningful difference in price. Ashley Harold, a travel consultant with Flight Centre Travel Group, told Global News that Canadians should focus on “where their dollar can be stretched further” and consider working with a travel agent to find the best value for their budget (10).
Consider booking one-way tickets separately. Different airlines may offer the best price on different legs of your trip. Mixing and matching carriers on separate one-way bookings can sometimes beat the price of a round-trip ticket — especially when fare prices are moving quickly.
Advertisement
Cash in your rewards. Points and miles tend to hold their value more steadily than cash fares during fuel spikes. If you have air miles or credit card travel points sitting unused, now is a smart time to put them to work, according to CBS News (11).
Read your travel insurance carefully. Acts of war and civil unrest are generally excluded in standard travel insurance coverage. If your destination gets caught up in conflict after you’ve already booked, you may not be covered for a cancellation. Look for a policy that specifically covers war-related disruptions if you’re travelling anywhere near an affected region.
Stay close to home for now. If prices abroad feel too steep to manage, Gradek shared with Global News that most Canadians are expected to shift toward domestic travel in the near term (12). Exploring everything our own country has to offer may present travellers with better value until world relations stabilize.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
Bottom line
The war in Iran has thrown real uncertainty into travel plans for Canadians feeling the need to ditch the winter for sunny skies and warmer climates. Jet fuel costs have surged significantly, Canadian airlines are raising fares in response and the full impact on ticket prices — especially for long-haul routes — is still working its way through the system.
The smartest moves right now are booking early if you’re committed to travelling, using any loyalty program points you might have stacked up, staying flexible on your dates and making sure your travel insurance coverage is as inclusive as possible. And if the timing just doesn’t feel right, there’s no shame in waiting until the prices settle down.
— with files from Melanie Huddart
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
International Air Transport Association (1); Travelweek (2, 3, 8, 9, 12); Global News (4, 10) (6); CBC (5); OpenJaw (7); CBS News (11)
You May Also Like
- Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings
- If you’re still feeling the pinch this month — don’t panic. Here are 5 easy ways to fix your finances without a total overhaul
- How Warren Buffett’s simple buy-and-hold real estate approach offers a lesson for Canadian homeowners and long-term investors
- Approaching retirement with no savings? Don’t panic, you're not alone. Here are easy ways you can catch up (and fast)
Mike Crisolago is a Staff Reporter at Moneywise with more than 15 years of experience in the journalism industry as a writer, editor, content strategist and podcast host. His work has appeared in various Canadian print and digital publications including Zoomer magazine, Quill & Quire and Canadian Family, among others. He’s also served as a mentor to students in Centennial College’s journalism program.
