MONTREAL — Transat says ongoing volatility in aviation fuel prices, driven in part by the prolonged closure of the Strait of Hormuz, is continuing to place significant financial pressure on the airline industry and forcing the company to adjust its operations.

In an update issued this week, the company said it has already introduced fuel surcharges on new bookings and reduced planned capacity for the May-to-October 2026 period by approximately 6% in an effort to offset rising operating costs.

The program adjustments come as global fuel prices continue to climb, impacting airlines worldwide.

Transat said the fuel surcharges introduced earlier this year had only a limited effect on revenues during March and April because a large portion of bookings for that period had already been made before the fuel crisis began. As a result, the effect of fuel surcharges on Transat’s revenues is expected to remain limited in the short term and may only partially offset the high jet fuel prices in the following months.

Even after accounting for existing fuel hedging measures, Transat reported approximately $70 million in additional fuel-related costs for March and April 2026 compared to the same period in 2025, representing an increase of more than 75%.

The company said these additional costs will be reflected in its financial results for the quarter ending April 30, 2026, which are expected to be released in mid-June.

“The significant current volatility in aviation fuel prices is occurring amid exceptional circumstances affecting the industry on a global scale,” said Annick Guérard, President and Chief Executive Officer. “In addition to the cancellation of our flight program to Cuba until November 2026, the impact on our costs is material and could persist if the situation, which is beyond our control, were to continue. 

“Despite the measures we are implementing, we are not able to fully eliminate its effects. In this context, we continue to closely monitor developments and adapt our actions accordingly.”