Air Canada says it will reduce capacity to Florida, Las Vegas and Arizona as the U.S.-Canada tariff dispute simmers and the Canadian dollar continues to struggle. And WestJet might be next in line.
Speaking on a conference call to discuss Air Canada’s fourth quarter and yearly earnings for 2024, Mark Galardo, Executive Vice President, Revenue & Network Planning and President, Cargo, said it’s too early to know how Canadian currency issues and the U.S.-Canada tariff dispute will play out. But he said Air Canada will be reducing capacity to such U.S. destinations beginning in March.
It wasn’t immediately clear how much capacity will be taken off the market, but it’s a huge change in Air Canada’s transborder focus, and the strongest signal yet that Canadians are truly angry at how the U.S. government has been treating its neighbour to the north.
WestJet’s chief executive officer, Alexis von Hoensbroech, says interest in flying to the U.S. has dropped 25% in recent weeks. He didn’t say the Calgary-based company would match Air Canada by reducing capacity, but he suggested that changes are in the offing.
“We are watching and we don’t know how sustainable this is,” Von Hoensbroech said at a press conference on 13FEF, 2025.
“What we have seen though, since the tariff announcements, is that our sales from Canada into the U.S. have actually dropped very significantly,” von Hoensbroech said, adding that the exchange rate likely has something do with the falling demand as well.
Leger stated that domestic Canadian travel is the top alternative for those avoiding U.S. trips. Six-in-ten (61%) of those less likely to visit the U.S. plan to explore Canada instead – 30% will travel within their home province, while 31% will visit another province within Canada.
Statistics Canada figures released this week show there hasn’t been a huge drop in Canadian visits so far. Canadian air visits to the States were down 2.8% in January of 2025, compared to last year.