Fuel worries hit Canada travel

Canadian travel operators are heading into summer with one big variable they cannot price cleanly: fuel. Rising and unpredictable energy costs tied to the war with Iran are clouding fares, tour prices and seat availability. (ctvnews.ca) The pressure is already showing up in airline pricing. The Canadian Press reported in March that carriers in Canada and abroad were raising fares and fuel surcharges as the conflict entered its 12th day and oil costs climbed. (thecanadianpressnews.ca) Air Canada says its carrier surcharges can be used to offset fuel, insurance, navigational charges and peak travel dates. A current Air Canada surcharge rule dated April 7, 2026, lists international carrier surcharges for worldwide travel. (aircanada.com, aircanada.com) Fuel matters more to airlines than to most travel businesses because it is one of their biggest operating costs. CNBC reported in March that jet fuel generally accounts for 20 percent of airline expenses or more, behind labor. (cnbc.com) The timing is awkward for Canada’s tourism sector because summer is the money season. Destination Canada said tourism revenue between May and August 2025 reached nearly $60 billion, up 6 percent from the previous summer. (destinationcanada.com) That demand was driven heavily by Canadians travelling at home. Statistics Canada said Canadian residents took 90.6 million domestic trips in the second quarter of 2025, up 10.9 percent from a year earlier, while trips to Canada by visitors from the United States and overseas fell 3.1 percent. (statcan.gc.ca) For tour companies and regional operators, the problem is not only that fuel can rise. The harder problem is volatility, because businesses selling packages weeks or months ahead have to guess what their transport costs will be when travelers actually depart. (thecanadianpressnews.ca, ctvnews.ca) The wider fuel shock is not limited to airports. CTV reported on March 26 that Canadians for Affordable Energy president Dan McTeague expected gasoline prices to rise within 24 to 48 hours depending on Iran-United States negotiations, and CTV said diesel in Nova Scotia had already jumped more than six cents in a single move last year during an earlier flare-up. (ctvnews.ca, ctvnews.ca) So the summer question for Canadian travelers is less whether planes will keep flying than how much flexibility will cost. If fuel keeps swinging, the industry’s safest move is the one it is already signaling: higher prices, more surcharges and less certainty. (usatoday.com, ctvnews.ca))