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 the above U.S. destinations beginning in March.
Galardo said Air Canada hasn't noticed a major slowdown in near-term bookings for U.S. flights.
"That being said, if we can derisk this a little bit and move — and be a bit proactive and move capacity into other sectors we see strength. I think that’s the right move right now in this context.”
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.
"At this point they are still looking at it," an Air Canada spokesperson said in an email to Open Jaw when asked what cuts might be made. "As you know it is very fluid, so I do not have any numbers to share."
WestJet Ready to Adjust US Schedule
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. "If we feel we need to adjust our schedule, then we will.”
WestJet said demand for travel to the United States has been “soft” over the last few weeks since a possible trade war started brewing between Canada and its biggest trading partner.
“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.
As reported, a Leger poll conducted from 31JAN - 03FEB 2025 with 1,553 Canadians found that nearly half (48%) say they’re less likely to visit the U.S. this year versus in 2024. That’s nearly double the 29% of Canadians who said the same thing in a Narrative poll taken in mid-January.
And an even more recent (07-10FEB) Léger poll reported in the National Post indicates the number has increased substantially in just one week to 56% of Canadians who are willing to cancel or avoid U.S. travel.
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.
