Canadian leisure carrier Air Transat has removed seven international destinations from its 2026 flight schedule, a move driven by rising operating costs and fuel price hikes. The cancellations affect short-haul routes to Central America and the Caribbean, as well as a seasonal service to Iceland and a US destination in Florida. According to aviation analytics firm Cirium, the cuts reflect a broader consolidation trend among airlines facing a volatile economic climate.
Air Transat Cuts Cuba and Mexico Services
The majority of the cancelled routes involve short-haul international resort destinations. Air Transat stopped flying to four Cuban cities in February: Varadero, Cayo Coco, Holguin, and Santa Clara. The airline had served Varadero from Montreal, Quebec City, and Toronto using both Airbus A321LR narrowbodies and the widebody A330-300. The removal of these routes coincides with similar cuts by major Canadian carriers Air Canada and WestJet.
A key factor behind the withdrawal from Cuba was a jet fuel shortage. The BBC reported that the shortage stemmed from a US blockade on Venezuela, from which Cuba imports most of its fuel. This supply chain disruption forced airlines to reassess the viability of these long-standing leisure routes.
In Mexico, Air Transat ended its service to Guadalajara (GDL) in April. The carrier had operated flights from Toronto for only one season. This marks the fifth Central American destination cut from the network in 2026, highlighting the significant churn in the region’s air travel market.
End of Iceland and Orlando Routes
Air Transat also discontinued its seasonal service to Reykjavik Keflavik International Airport (KEF) in Iceland. The airline launched the route in June, operating flights from Montreal-Trudeau International Airport (YUL) up to twice a week until September 20. The service utilized Airbus narrowbodies and faced direct competition from Air Canada, which flies to Keflavik from Toronto. Current scheduling data indicates the carrier will not return to the Icelandic market next summer, suggesting the route was a limited experiment.
Sebastian Ponce, the Chief Revenue Officer at Transat, previously described the Reykjavik launch as a way to make a high-demand destination more accessible. However, the route did not survive the current operating challenges. Toronto remains the primary Canadian gateway to Keflavik, with Icelandair also serving that city alongside Vancouver.
Closer to home, Air Transat stopped flying to Orlando International Airport (MCO) in Florida in May. The airline had served Orlando from two bases using A321-200 and A321LR twinjets. In 2026, the carrier operated 69 flights to Orlando from Montreal and 25 flights from Quebec City. The decision to cut the US route aligns with a broader waning of demand for transborder travel from Canada to the United States, partly due to ongoing tariff tensions between the two nations.
These network reductions illustrate the pressure on airlines to consolidate operations amid high fuel prices and shifting demand. Air Transat’s 2026 schedule now reflects a more focused network, prioritizing routes that remain profitable despite the challenging global aviation environment.
Source: Simple Flying
