What Canadians need to know as airlines add fuel surcharges

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Airfares across Canada have been creeping upward in recent weeks, and now several airlines are adding a familiar line item many travellers hoped had disappeared for good: fuel surcharges. 

Some Canadian carriers have begun rolling out targeted fees tied to rising jet fuel prices, affecting everything from vacation packages to loyalty bookings. 

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The charges are not uniform across the industry, but the direction is clear. As fuel prices rise globally, airlines are beginning to pass along some of those costs to travellers. 

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What airlines are adding fuel surcharges?  

Fuel is one of the largest operating costs for airlines, accounting for a quarter or more of total expenses, according to the International Air Transport Association. When oil prices spike, carriers typically offset the increase by raising fares or adding surcharges. 

Several Canadian airlines have now opted for the latter, though the details vary widely. 

Air Canada Vacations, the airline’s subsidiary, was among the first to act, implementing a $50 per passenger fuel surcharge on new vacation packages to sun destinations, effective April 6. The fee applies to warm-weather spots including Mexico, the Caribbean and parts of the United States, and is reflected in the taxes and surcharges portion of the booking. Existing reservations are not affected, and the fee does not apply to flight-only bookings 

As of April 8, WestJet has added a temporary $60 fuel surcharge on bookings made with its companion voucher, a perk popular with RBC WestJet Mastercard holders. 

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In an email, the Calgary-based carrier said the charge will appear in the “Other ATC” section of companion voucher bookings, and the airline will continue to assess the surcharge and adjust as conditions allow.  

“Fuel is the largest contributor to airline operating costs, and a temporary surcharge helps us manage the recent surge in fuel prices,” the airline said in a statement. 

The company noted that standard fares can fluctuate frequently based on supply and demand, but companion vouchers have fixed pricing structures that limit that flexibility. 

Porter Airlines introduced a temporary $40 “Peak Surcharge” per passenger, each way, on all VIPorter flight redemptions, effective March 23 for new bookings. Existing reservations are not impacted. In a message to VIPorter members, the carrier emphasized the surcharge is expected to be temporary, and that it plans to return to standard pricing once oil prices stabilize. 

Low-cost carrier Flair Airlines confirmed it implemented a carrier surcharge on April 6. 

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“Like all airlines, Flair operates in a dynamic cost environment, with fuel representing a significant and volatile expense,” a Flair spokesperson said in an email. 

“We have implemented a carrier surcharge to help reflect these changing costs.” 

The airline said the fee will be clearly displayed at the time of booking to ensure travellers understand what they are paying and will vary by route. 

Air Transat has adjusted its carrier surcharge across European markets to help offset rising fuel costs, and more increases are on the way. In an email to Postmedia on April 7, the airline confirmed a surcharge on new bookings for Transat South vacation packages is to be introduced shortly, in line with what other Canadian carriers have already announced. The airline added that additional fare adjustments may follow as it continues to monitor the situation. 

What this means for loyalty points 

For points collectors, the picture is mixed. Some airlines are already applying fees to loyalty bookings or voucher redemptions, particularly where the fare structure is fixed and cannot be easily adjusted. This includes Porter’s $40 surcharge applied to VIPorter flight redemptions and WestJet’s $60 surcharge to companion voucher bookings. 

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Aeroplan point redemptions on Air Canada flights are not currently affected by the carrier’s surcharge schedule, though the airline reserves the right to modify conditions at any time.  

Industry watchers say this is not unusual. Fuel surcharges have historically appeared first on reward bookings or vacation packages, where pricing flexibility is more limited. If fuel prices remain elevated, surcharges could spread more broadly across reward travel.

Travellers respond with caution 

So far, travel advisers say travellers are not cancelling trips in large numbers. But the new charges are prompting plenty of questions. 

“Flight prices are fluctuating more, and people are noticing higher than expected prices, even for dates that are further out,” said Renée Tsang, a luxury travel adviser with Seraphina Travel. 

For most travellers, the surcharges haven’t triggered a booking frenzy, but those with firm plans are booking earlier.  

“At this stage, there’s more conversation than action, unless people have dates set in stone, then they’re locking in those flights for later in the year now,” she said. 

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Booking early may also help secure better prices, as fares could rise further with additional surcharges. 

“To get the better pricing, the earlier the better,” Tsang added. 

Could more surcharges be coming? 

Travel advisers say the recent announcements may only be the beginning. 

“I don’t think any traveller will be immune to the fuel surcharge. Once one airline announces it, the rest will follow,” Tsang said 

Even if oil prices eventually stabilize, she cautions that airfare adjustments rarely happen overnight. 

“Surcharges and price increases arrive quickly, but it’s a much slower, gradual change for them to drop,” noted Tsang. 

For now, most of the new surcharges remain relatively modest and narrowly applied. But for Canadians planning trips later this year, the return of fuel fees is a reminder that airline pricing can change quickly when global energy markets shift. 

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