Air Travel Between Canada and US Sees Massive Decline Amid Tariff Fears

By Madelaine Panganiban

Updated: Mar 29 2025, 05:00 AM EDT

Air Travel Between Canada and US Sees Massive Decline Amid — An Airbus A350 passenger aircraft of Japan Airlines and Boeing 777 passenger aircraft of American Airlines are pictured as a Boeing 747 cargo aircraft of Atlas Air is seen in the background at John F. Kennedy Airport in New York City on March 5, 2025. CHARLY TRIBALLEAU/AFP via Getty Images/Getty Images

Air travel between Canada and the United States has seen a significant drop as trade tensions between the two countries escalate.

According to a recent report by OAG Aviation, flight bookings between Canada and the US have plummeted by 70% compared to the same period last year. Experts attribute this decline to growing uncertainty surrounding proposed tariffs on Canadian imports.

Industry analysts suggest that travelers are hesitant to book trips due to concerns about the economic impact of the tariffs.

President Donald Trump has announced plans to impose a 25% tariff on Canadian goods, a move that has raised fears of economic instability.

According to CBS News, though the tariffs have been delayed until April 2, their potential implementation is already affecting consumer behavior.

As demand weakens, airlines have begun cutting capacity on flights between Canada and the US. The most significant reductions are set for the peak summer travel months of July and August.

More than 320,000 airline seats have been removed from the market for flights scheduled between March and October.

Flights by Canadians to the US are down by more than 70%. Canadians are more united and determined than ever before. We will not bow down to Trump! Most of us are firmly on Team Canada. Only Maple MAGAs like Danielle Smith are still traveling to the US. https://t.co/dneEcz3FHJ pic.twitter.com/Nla5SfaJxx
— Gil McGowan (@gilmcgowan) March 27, 2025

Air Canada Cuts Flights to US Amid Changing Travel Demand

Flair Airlines, a Canadian budget carrier, recently announced the cancellation of multiple US-bound routes, including flights from Toronto to Nashville and Calgary to Las Vegas.

Air Canada has also adjusted its flight schedules, reducing capacity to several US leisure destinations.

"Demand for sun markets continues to surpass our expectations, and the booking curve has shifted to a more close environment," said Mark Galardo, Air Canada's executive vice president for revenue and network planning, FinancialPost said .

As tensions rise, many Canadians are opting to travel domestically or to alternative international destinations.

Reports indicate increased bookings to Mexico and the Caribbean, with some airlines reallocating capacity to meet this shifting demand.

Former Canadian Member of Parliament Dr. Ruby Dhalla noted that Canadians are prioritizing local travel. "Instead of going to the US, families are exploring Canada's history and heritage," Dhalla said.

Surveys suggest that over half of Canadians who had initially planned trips to the US have altered their plans due to trade concerns and the weakening Canadian dollar. Some have canceled trips entirely, while others have chosen different destinations.

While airlines are expected to offer discounted fares to boost demand, industry experts remain cautious. The traditional "snowbird" market—Canadian retirees who travel south for the winter—could face significant disruption next year if trade relations do not improve.