Budget carrier cancels Canada flights over fuel costs

A low-cost carrier canceled scheduled flights to Canada this week, removing several direct and seasonal services to Canadian cities from its timetable and notifying affected customers by email.

Company officials attributed the suspension to a sustained rise in jet fuel prices that has reduced margins on long-haul and transatlantic routes. Fuel hedges and ancillary revenues were not sufficient to cover the increased operating costs, the airline noted.

The carrier said the cancellations will remain in place until market conditions improve. Passengers booked on affected flights have been offered refunds or rebooking options. The airline intends to prioritize travelers with imminent departures and will refund tickets that cannot be accommodated on alternative flights.

Some customers reported abrupt changes to itineraries and hotel plans, and customer-service wait times lengthened as the carrier processed requests. Travel agents and tour operators with packages that include the affected flights are working with the airline to arrange alternatives for travelers.

Industry analysts point to recent volatility in global oil markets and tighter refining margins as drivers of higher jet-fuel prices. For low-cost carriers that operate routes with thin margins, sudden increases in fuel costs can turn a route from profitable to loss-making and prompt route pruning or capacity adjustments.

Airlines have responded this year with schedule changes, targeted fuel surcharges, trimmed frequencies, delayed fleet expansion, or by shifting capacity to shorter, lower-cost routes. Long-haul budget services require more fuel per flight and leave less opportunity to recover costs through ancillary fees.

Passengers affected by the cancellations should check the airline's official communications for details on refunds and rebooking. Those who booked through third parties should contact their travel agent or tour operator for assistance.