Canadian Airlines Revamp Offerings as U.S. Travel Demand Drops

Canadian airlines revamp offerings this summer in response to a steep decline in travel to the United States. As fewer Canadians book flights to Florida beaches and Disneyland, major carriers are cutting U.S. routes and shifting focus to domestic and European travel.

Industry experts say this shift could trigger a price war—especially on domestic routes.

U.S. Travel Demand Plummets

Airlines are adjusting quickly. WestJet has scaled back U.S. flights and redirected aircraft to Europe and sun destinations. Air Canada reports a 10% drop in transborder bookings and is now using smaller planes and fewer flights on some U.S. routes.

Porter Airlines also reduced U.S. service slightly, moving capacity into the Canadian market.

Data from Cirium shows that Canada-U.S. summer bookings are down nearly 20% compared to 2024. Meanwhile, bookings between Canadian cities are up by about 11%.

Why Are Canadians Avoiding the U.S.?

Several factors are fueling the change:

• Political tensions between Canada and the U.S.
• The weakening Canadian dollar
• Uncertainty over U.S. tariffs and cross-border policies

At Calgary International Airport, travelers confirmed the trend.

“We’re putting our dollars elsewhere,” said one Toronto resident. Another traveler, heading to Brazil, said she planned to spend summer in Canada instead of the U.S.

More Flights to Europe, But With Limits

To fill the gap, airlines are expanding European routes. Air Canada now offers service from Montreal to Edinburgh and increased flights to Paris, Rome, and Athens. WestJet added routes from Halifax to Barcelona and Amsterdam.

Even European carriers are stepping in. Discover Airlines, owned by Lufthansa, launched a Munich–Calgary route. The airline hopes to serve both incoming tourists and Canadians seeking new destinations.

Still, not all U.S.-bound aircraft can make it across the Atlantic. Many narrow-body jets don’t have the range for Europe, especially from western Canada. That means most planes will stay in domestic circulation.

Are Lower Prices Coming?

Aviation expert John Gradek predicts a domestic price war could begin in early May. With extra planes and fewer U.S. options, airlines might flood the Canadian market with low fares to fill seats.

Cirium’s Mike Arnot also says airlines may slash prices for non-refundable U.S. flights they can’t cancel. If demand doesn’t return, Canadians might find cheap deals to cities like New York or Los Angeles—despite economic concerns.

What This Means for Summer Travelers

• Expect more options for travel within Canada and to Europe.
• Watch for price drops, especially in early May.
• Avoiding the U.S.? You’re not alone—many travelers are choosing local adventures.

This summer could mark a turning point in Canadian air travel, with new routes, new prices, and a renewed focus on homegrown tourism.

More…

• https://www.cbc.ca/news/canada/calgary/canadian-airlines-revamp-offerings-as-travellers-ditch-u-s-vacations-1.7512343
• https://www.overheretoronto.com/canadian-travel-to-us-2025-drops-sharply 
• https://www.cbc.ca/news/business/canada-us-travel-fears-1.7506048