Bookings on U.S.-bound routes down about 10% amid tariff backlash: Air Canada

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This article was published 31/03/2025 (548 days ago), so information in it may no longer be current.

MONTREAL – Bookings on cross-border routes are down significantly across the industry amid Canadians’ new-found aversion to U.S. destinations, Air Canada says.

At its annual shareholder meeting Monday, the company said its decreased cross-border flight bookings for the next six months were “comparable” to an industry-wide drop of about 10 per cent.

Most Canadian carriers have reduced capacity to the United States while bolstering their domestic or transatlantic offerings, as customers turn their back on travel to a country whose president has set off a continental trade war and threatened annexation.

A weak loonie has also discouraged stateside excursions because the conversion rate has been particularly unfavourable for Canadians over the past four months.

Flair Airlines commercial vice-president Eric Tanner says cross-border trips will comprise just 12 per cent of the budget carrier’s network in winter 2025-26 versus 20 per cent over the past few months.

“Overall, we’ve seen more customer and consumer uncertainty. Obviously the U.S. tariff issue is getting a lot of attention, and we’ve certainly seen an impact from that and made network moves to adapt accordingly,” Tanner said in a phone interview.

Porter Airlines remains the exception, boosting its flight volume south of the border by 25 per cent year-over-year for the summer amid a rapid expansion, though its U.S. network will be smaller than previously planned.

This report by The Canadian Press was first published March 31, 2025.

Companies in this story: (TSX:AC)