Wedoany.com Report-Apr. 2, Air Canada has reported a decline in bookings for flights between Canadian and U.S. cities during spring and summer, with a 10% reduction in transborder flight bookings compared to the same period last year, as of mid-March. Chairman Vagn Sørensen expressed concern over the situation, and the airline’s shares have dropped 35% since the start of the year. U.S.-Canada routes accounted for 22% of Air Canada’s passenger revenue in 2024, according to recent data.
The airline is focusing on boosting demand for its Europe-bound flights, adding new routes to cities like Edinburgh, Paris, Athens, and Rome this summer. However, U.S.-Canada routes remain a significant part of its operations.
Competitors like Porter Airlines and Virgin Atlantic have also adjusted their schedules. Porter Airlines has reduced domestic route capacity by 5 percentage points, while still maintaining a larger presence on Canada-U.S. routes. Virgin Atlantic reported weaker ticket sales on U.S. originating flights but noted stable demand from Europe to the U.S.
The S&P 500 Passenger Airlines Index dropped over 6% early Monday, though losses were later reduced to 1.4% as of 1:30 p.m. Public opinion polls indicate that a majority of Canadians disapprove of Donald Trump’s policies and are not interested in joining the U.S., with only 9% of Canadians expressing interest in being part of the U.S.
Air Canada remains focused on maintaining flexibility to redeploy capacity when demand shifts, ensuring it can adapt to the changing travel landscape.
