This decline in travel is exacerbated by a growing apprehension among Canadian travelers about crossing into the U.S., driven by reports of foreign visitors facing detention by U.S. authorities.

In light of these tensions, former Prime Minister Justin Trudeau has urged Canadians to prioritize domestic travel and support local businesses, leading to a grassroots 'buy Canadian' movement.

Canadian Prime Minister Mark Carney has criticized U.S. tariffs on Canadian goods as a 'direct attack' on Canadian workers, further straining U.S.-Canada relations.

Canadian leaders warn that the U.S. could face economic repercussions, including higher prices and slower growth, as a result of these tariffs, although the impact is expected to be more severe for Canada.

Industry experts suggest that airlines may need to offer lower fares to stimulate demand, but the outlook for the traditional 'snowbird' market remains uncertain.

As Canadians shift their travel preferences towards destinations like Mexico and the Caribbean, airlines like WestJet are adjusting their flight schedules, adding more routes to these locations while cutting back on U.S. flights.

The airline industry is facing a decrease in consumer confidence, with Canadian airlines particularly vulnerable as they operate about two-thirds of U.S.-Canada flights.

Despite the drastic drop in bookings, airlines have only cut 1.6% to 3.5% of their schedules, indicating that further adjustments may be necessary.

Local economies in U.S. border towns, such as Buffalo, New York, are feeling the impact of decreased Canadian visitors, with bridge traffic down by 14% in February 2025.

The reduced travel demand has led to a decline in shares of major airlines, including Delta and United, reflecting the broader challenges facing the aviation industry.

Airlines are grappling with the need to adjust their networks amidst persistently low demand for transborder travel, complicating future route planning.

Air Canada, Delta, and United Airlines are significantly reducing flights between the U.S. and Canada, with bookings plummeting over 70% for the period from April to September 2025 compared to the previous year.