Several airlines have begun reducing fuel surcharges as easing tensions in the Middle East contribute to falling oil prices, though many carriers remain cautious about passing savings onto customers amid strong summer travel demand.

WestJet Airlines announced on Wednesday that it is lowering the fuel surcharge applied to its companion vouchers, a benefit linked to its Mastercard loyalty program, from $60 to $40. The move reflects recent decreases in fuel costs, according to the airline. The day prior, Porter Airlines, based in Toronto, halved the $40 surcharge it introduced in March for reward flight redemptions. That fee had been implemented in response to a sharp rise in fuel prices triggered by U.S.-Israeli attacks on Iran.

Cathay Pacific Airways Ltd., headquartered in Hong Kong and serving many Canadian travelers, also reduced its flight fuel surcharges, delivering approximately 14.5 percent savings on several major international routes. Brent crude oil prices, a key global benchmark, dropped to their lowest level since before the onset of the conflict involving Iran, signaling a potential easing of supply pressures.

Despite these developments, a number of airlines are opting to maintain current surcharge levels or incorporate fuel-related costs into overall fares rather than reduce charges explicitly. Air Canada, for example, confirmed that the $50 fuel fee per passenger included with its Air Canada Vacations ground packages will remain in place for the time being. Peter Fitzpatrick, a spokesperson for Air Canada, cited ongoing uncertainty surrounding Middle East dynamics as a primary reason for maintaining surcharges. He added that the airline manages fuel expenses through regular fare adjustments rather than separate fees.

Industry observers note that some carriers have avoided listing fuel surcharges separately, instead embedding these costs within ticket prices, which have generally risen alongside a rebound in travel demand. Many airlines appear to be balancing the potential for lower fuel expenses with the opportunity to recover revenue losses incurred during recent months of volatility. As summer travel remains robust, airlines’ approaches to fuel surcharges vary widely depending on individual strategies and perceived market conditions.