As the war in the Middle East continues, crude oil prices are hovering well above the $100 US mark — a pressure that is starting to weigh on consumer-facing, fuel-guzzling businesses like airlines, shipping couriers and rideshare companies.
To offset the increase in gas prices, a number of these businesses have started adding a fuel charge on top of their regular pricing. The surcharges are usually temporary, and are meant to cover changing gas prices during volatile periods.
CBC News reached out to a number of Canadian companies across several sectors to ask whether they have or plan to add a fuel surcharge, and will add responses to this file on an ongoing basis.
Airlines
Jet fuel tends to be an airline’s biggest expense. In fact, an analysis by the International Air Transport Association showed that, for the week ending March 27, the weekly average price of jet fuel has skyrocketed 116.8 per cent compared to the previous year’s average.
That’s why many carriers — Canadian and international alike — have added these fees to plane tickets in recent weeks. We asked a few of them what kind of bump passengers could expect.
Air Canada told CBC News that any impact on the price of fuel directly affects the price of all flight routes, but a spokesperson declined to comment on specifics.
Meanwhile, Air Canada Vacations — a subsidiary that specializes in travel packages — has added a $50-per-passenger fuel surcharge to all of its warm-weather destinations, effective on all new bookings as of April 6.
The fee will be “reflected within the selling taxes and surcharges at the time of booking,” according to an email update sent to customers.
WestJet, meanwhile, said that its fares are adjusted accordingly when fuel prices rise, but did not say what kind of increases passengers could expect.
Porter Airlines told CBC News that it has added a temporary $40 “peak surcharge” to all flights redeemed through VIPorter, its premium membership tier. The change went into effect on March 23 for all new VIPorter bookings, with existing bookings unaffected.
“As oil prices stabilize and return to normal levels, we plan to return to standard pricing,” a spokesperson said.
Air Transat said it’s currently charging $50 on flight segments leaving from Canada and €25 (or about $40 Cdn) on flight segments leaving from Europe.
“The situation remains volatile and we continue to closely monitor market movements and trends,” a spokesperson told CBC News.
Fuel prices have skyrocketed across Newfoundland and Labrador this month as a result of the ongoing war in the Middle East. And as the CBC’s Laura Howells…
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