Airlines Reduce Seats Amid Weaker Canada-U.S. Travel Demand

 
 

More than 320,000 seats have been removed by airlines operating U.S.-Canada routes between now and October as the Trump administration’s policies toward its northern neighbor take their toll on travel.

Driven by weakened demand—passenger bookings on Canada-U.S. routes are down 70 percent compared to 2024—airlines have cut capacity by 3.5 percent in July and August, typically the busiest months for cross-border travel, according to aviation analytics firm OAG.

Reduced Flights for Two Major Airlines

Air Canada and United Airlines are among the carriers reducing service.

In a March 26 report, OAG Lead Analyst John Grant called the decline in travel demand “striking.”

“This sharp drop suggests that travelers are holding off on making reservations, likely due to ongoing uncertainty surrounding the broader trade dispute,” Grant wrote. “Unfortunately, the law of unintended consequences is once again impacting the airline industry, adding to what had already become a softening market.”

Trump’s hostile attitude on issues ranging from trade and tariffs to seeking to make Canada part of the United States has prompted a widespread boycott of U.S. goods and services among Canadians.

“We completely stopped promoting the U.S. because of the backlash from the consumers,” Flemming Friisdahl, Chief Executive of The Travel Agent Next Door, a Canadian company with a network of 1,500 travel agents, told the New York Times on March 28.

Friisdahl said many Canadian travelers are opting to vacation in Europe or other destinations, instead. “It’s such a shame that we’re in this position today because we’ve always been amazing neighbors,” he said.

“For those that are still planning to travel, there may be some airlines offering particularly cheap airfares over the next few months as they seek to stimulate demand, but for the airlines it will be a nervous few months, especially as the traditional “snowbird” market from Canada to the US could be badly impacted next year if the situation doesn’t improve quickly,” according to Grant.