Starting in March, Air Canada will proactively reduce capacity to select U.S. leisure destinations in response to shifting demand from Canadian travelers, prompted by President Donald Trump’s tariff threats and anticipated regulatory measures.
The airline clarified that it is not yet experiencing a drop in U.S. demand but is taking preemptive steps in light of potential market challenges. While the impact of U.S. regulatory tariffs and potential Canadian retaliations remains uncertain, Air Canada is closely monitoring customer behaviors and market trends as Canadians explore alternative travel options.
Mark Galardo, Air Canada’s executive vice-president of revenue and network planning, shared during the company’s Feb. 14 earnings call that, despite external pressures like currency fluctuations, encouraging booking trends are evident for destinations such as the transatlantic market, which is seeing a rebound in spring and summer demand.
Galardo also highlighted opportunities for redeployment to sun markets, where demand is strong, and noted potential growth in Canadian domestic leisure markets. On the cargo side, the airline anticipates favorable outcomes in the first quarter of 2025, though uncertainties remain for the rest of the year due to trade and geographic shifts.
In its fourth-quarter earnings report, Air Canada reaffirmed its 2025 outlook, maintaining its adjusted EBITDA guidance of $3.4 billion to $3.8 billion and projecting 3-5% growth in available seat per miles capacity as stated during its December investor day.
Source: Swifteradio.com
