Air Canada has reported a notable decline in bookings on U.S.-bound flights, attributing the downturn to the ongoing tariff disputes between Canada and the United States. The airline plans to reduce capacity on select routes to Florida, Las Vegas, and Arizona starting in March, citing the ongoing Canada-U.S. tariff dispute and the weakened Canadian dollar.
This trend reflects a broader hesitation among Canadian travelers to visit the United States amid escalating trade tensions. Data from OAG, a global travel data provider, indicates a decrease of over 70% in forward airline bookings from Canada to the U.S. for the months of April through September 2025 compared to the same period last year.
The decline in travel interest is further evidenced by the U.S. Travel Association’s warning that a 10% reduction in Canadian visitors could result in a $2.1 billion loss for U.S. businesses.
In response to these challenges, Air Canada is proactively adjusting its operations. The airline is considering redeploying capacity to other markets where demand remains robust, such as sun destinations in Mexico and the Caribbean.
Despite these setbacks, Air Canada remains cautiously optimistic. The airline has observed encouraging booking trends and yield signals for the second and third quarters of 2025, particularly in international markets. This suggests that while U.S.-bound travel faces headwinds, other segments may help offset the decline.
Source : Swifteradio.com
