TORONTO — Fuel surcharges are the new normal as the world’s airlines face down rapidly rising jet fuel costs – and even bigger concerns about jet fuel supply.

WestJet Group’s near-term measures amid the global fuel crisis include a fuel surcharge on Sunwing Vacations and Vacances WestJet Québec vacation packages.

As reported yesterday, there’s also a temporary fuel surcharge on WestJet Rewards Companion Vouchers. WestJet Group has also combined some flights on lower demand routes, reducing the number of flights by approximately 1% in April and 3% in May. It said most clients have been provided accommodation options due to the consolidations.

“The closure of the Strait of Hormuz has strained global oil supplies and led to a spike in the price of oil and a larger increase in the price of jet fuel, which typically accounts for approximately 20% of an airline’s costs,” says WestJet Group.

WESTJET REWARDS COMPANION VOUCHER SURCHARGE

The temporary fuel surcharge of $60 on all bookings made with a WestJet Rewards companion voucher takes effect April 8. The surcharge will be reflected in the ‘Other ATC’ portion of companion voucher bookings. WestJet Group says it 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. While airfares can be adjusted and have greater flexibility in pricing, the nature of our companion vouchers does not allow for this same flexibility,” says the company.

WestJet airfares and WestJet Vacations packages reflect current operating costs and will continue to fluctuate based on market supply and demand.

SUNWING VACATIONS & VACANCES WESTJET QUEBEC SURCHARGE

Meanwhile a fuel surcharge of $50 per person will apply to all Sunwing Vacations and Vacances WestJet Québec bookings made as of April 14. Existing travellers/bookings will not be affected. The surcharge will be included within the regular taxes and fees at the time of booking and is applicable to all Sunwing and Vacances WestJet Québec bookings.

“We appreciate our guests’ understanding as we navigate these unprecedented cost pressures and remain committed to providing exceptional travel experiences to our guests,” says WestJet Group.

MORE AIRLINE AND TOUR OP SURCHARGES

Last week ACV announced a $50 per passenger fuel surcharge, now in effect, on all new bookings for sun packages. The fee is reflected within the selling taxes and surcharges at the time of booking.

At Porter Airlines, a temporary $40 peak surcharge has been introduced for flights booked using VIPorter, the carrier’s premium loyalty program. The surcharge took effect March 23 for new bookings, while existing reservations are not impacted.

Air Transat has also adjusted its pricing, introducing a $50 surcharge on flight segments departing Canada and €25 on segments departing from Europe.

“THE BIG TSUNAMI WE’RE GOING TO HIT IS SUPPLY”

While surcharges are frustrating for travellers and the trade, as aviation industry expert John Gradek told CTV News, the bigger concern for the airline industry is a lack of fuel supply.

“Probably about 25 – 30% of the world’s aviation fuel does originate in the Middle East. So it is a significant impact on the airlines,” said Gradek.

“Yes, prices are going up, but I think the big tsunami we’re going to hit is going to be supply. We’re going to start running out of aviation fuel probably within the next week or so in various parts of the world.”

Gradek said countries in southeast Asia will feel it first. Flights or specific routes will be cancelled to deal with the jet fuel shortage.

Dan McTeague, gas analyst and president of Canadians for Affordable Energy, told CTV the current situation with the Iran war and the blocked Strait of Hormuz “is probably the greatest energy crisis of a generation.”

While domestic flights within Canada shouldn’t be impacted, return trips from international destinations could be challenged, said Gradek.

“Asia, Western Europe, Central Europe, that’s where we have to be concerned about, with both the supply of jet fuel and the price of jet fuel. International services are at risk,” he said, adding that flight routes could change or some international trips could be cancelled altogether, starting as soon as the middle of the month.

According to Business Insider, Lufthansa told Bloomberg it could ground up to 40 aircraft in a worst-case scenario, while SAS said it would cut up to 1,000 flights, primarily short-haul routes, due to the surge in the price of jet fuel.