As many Canadians look to book their summer getaways, the energy shock from the Iran war and the resulting surge in fuel prices around the world means many will be making changes as jet fuel and gas prices stay high across the country.
A new survey from the Tire and Rubber Association of Canada has found that two-thirds of Canadian drivers (66 per cent) say “high gas prices will prompt them to cancel or limit road trips this summer.”
In addition, 70 per cent of Canadians believe high gas prices represent the “new normal.”
Amy Butcher, vice-president of public affairs at the Tourism Industry Association of Canada, said in an email statement to Global News that “the result is not necessarily that Canadians stop travelling, but that they travel differently.”
The CAA currently lists the national gas price at $184.8 per litre, a stark increase from the $171.8 per litre from a week ago, and $133.7 per litre from a year ago at this time.
“For some Canadians, higher gas prices may mean shorter road trips, fewer nights away, travelling closer to home, or choosing destinations that offer better overall value,” Butcher stated.
Statistics Canada noted in April 2026 that Canadian residents returned from 3.3 million trips abroad in February 2026, which was down 5.5 per cent compared with the same month in 2025.
Multiple Canadian airlines have imposed changes this year in response to global spikes in jet fuel prices as the war in Iran continues, a sentiment that Butcher stated can “influence behavior.”
Air Transat announced on April 22 that six per cent of its flights between May and October would be cut as the war pummels jet fuel prices, the airline said in a statement.
WestJet passengers are also having to pay higher baggage fees starting April 23 as the Calgary-based carrier says it is dealing with “current global conditions.”
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WestJet is also implementing a temporary fuel surcharge of $60 on all bookings made with a companion voucher as of April 8.
Air Canada is also suspending its full-year guidance for 2026, citing “volatility and uncertainty in relation to jet fuel prices for the second half of the year,” making the announcement in its first-quarter earnings results last week.
Arma Durakovic, head of communications for Flight Centre Travel Group, said that airlines are cutting back on “non-profitable routes” to ensure that “summer vacations go on.”
Air Canada announced on April 17 that the airline would be cutting flights from Toronto and Montreal to New York’s John F. Kennedy International Airport from June 1 to Oct. 25.
Durakovic also said that for those looking to book a flight, “the price you see today is generally the best available.”
“We don’t see these prices decreasing anytime soon.”
Frédéric Dimanche, a professor at Toronto Metropolitan University’s in the hospitality and tourism management department, said in an emailed statement to Global News that Canadians are looking at other areas to save money when travelling.
“Budget-conscious Canadians may change their plans to travel for a shorter number of days, to a closer destination (cheaper), and they may also cut on some expenses such as food and beverage in restaurant, or choose cheaper accommodations,” Dimanche said.
The survey also suggests that Canadians are choosing to alter their travel plans to avoid going to the U.S., as 68 per cent of surveyed Canadians are not planning a road trip to the U.S. in 2026. Over half (51 per cent) cancelled cross-border trips last year, with only 10 per cent heading stateside this year.
Dimanche also added that Canadians “dislike of the U.S. as a destination continues.”
For many, travelling within Canada for a getaway rather than leaving the country is a more cost-effective trip.
Destination Canada’s spring 2026 tourism outlook states that Canadians are “‘reshoring’ their travel dollars, choosing to explore their own backyard rather than crossing the border.”
The outlook highlights that tourism spending in Canada is projected to reach $140.9 billion in 2026, up six per cent from 2025, and total tourism revenue is projected to reach $216.3 billion by 2035.
Tourism revenue reached $59 billion between May and August 2025, with $44.4 billion coming from Canadian travellers. Domestic tourism spending also grew 6.9 per cent year over year that summer.
Butcher also stated that “higher air travel costs may make domestic or regional trips more attractive than overseas vacations.”
Overall, Durakovic stated that what helps Canadians choose where to travel stems from multiple areas.
“Factors that are influencing where they’re travelling this year is their comfort levels and feeling welcomed by locals, value for money and the strength of the Canadian dollar,” she said.
© 2026 Global News, a division of Corus Entertainment Inc.
