Jet fuel price surge impacting travellers’ plans

Passengers walk past Air Canada and WestJet planes at Calgary International Airport on Aug. 31, 2022. (THE CANADIAN PRESS/Jeff McIntosh)

The chain reaction from the Strait of Hormuz closing and preventing the flow of jet fuel has travellers rethinking summer plans.

Nish Behel was planning on heading to Amsterdam to see his grandparents this summer.

“I’ve reconsidered my travel plans. ... I’ve actually abandoned that because of the flight prices,” said Behel.

Prices have risen since the start of the Iran war after the country blocked oil tankers from crossing the Strait of Hormuz.

For the week ending April 24, the International Air Transport Association reported an average jet fuel price of almost US$179 per barrel.

“The global price for aviation fuel used to sell for about $70 a barrel,” said John Gradek, who lectures on supply chain and aviation at McGill University.

According to Gradek, 20 per cent of Europe’s jet fuel comes through the strait.

“Carriers have increased their fares, not identifying it as a price surcharge per se, but just increased the fares by 15 to 20 per cent over the last two months,” said Gradek.

WestJet announced a temporary fuel surcharge of $60 on bookings made through WestJet Rewards companion vouchers and has added an extra $5 each for the first and second bags checked in advance.

The fee grows to an extra $10 each for the first and second bags checked at the airport instead of online.

Air Canada Vacations began adding a $50 fuel surcharge to select vacation packages at the beginning of April.

Travel expert Onanta Forbes has seen some hesitation from customers looking to book a European vacation.

Many customers are looking at pushing their trips back.

“They do want to travel to Europe. They don’t know when to book,” said Forbes.

She says many are also concerned about the fuel shortage keeping them stuck abroad.

“They are looking at going later in the year, perhaps hoping that the fuel shortage crisis will end sooner than later or level out so that we can confidently book them,” she said.

Forbes advises people to book sooner rather than later for trips they’re planning.