Porter Airlines Cuts Fuel Surcharge on Reward Flights Amid Falling Oil Prices

Canadian carrier Porter Airlines has reduced the temporary fuel surcharge on bookings for its new VIPorter reward flights from $40 to $20, effective Tuesday, citing lower oil prices and improving market conditions.

Although oil prices have remained volatile since the conflict involving Iran began in February and are still nearly 50 per cent higher than a year ago, the airline says it plans to eliminate the surcharge entirely once market conditions stabilize further.

Porter's decision has raised expectations that other airlines may also reduce their fuel surcharges in the coming weeks.

The surcharge was originally introduced in March to help offset rising operating costs caused by a sharp increase in global oil prices.

Meanwhile, Air Canada has announced that it will reduce commissions paid to travel agents starting July 1.