Airline capacity between Canada and the US have been reduced through October 2025, according to a report from OAG.
The report noted that the most significant cuts were made during peak summer travel periods in July and August. Furthermore, forward bookings between the two countries are down by around 70% compared to the same period last year.
The decline comes as trading conflicts arise between both countries. US President Donald Trump imposed 25% tariffs on Canadian steel and aluminium imports, as well as 25% tariffs on imported vehicles.
Canadian prime minister Mark Carney said at a press conference on March 27, 2025, that the country would respond with retaliatory tariffs that would have a maximum impact on the US.
The OAG report noted that July and August capacity were both down 3.5% compared to last year. In addition, April, May, and June capacity is down 2.1%, 3.2%, and 2.6%, respectively. Capacity decline, currently, normalises to down 1.6% for September and down 1.2% in October.
With Canadian airline WestJet adding 114 additional flights to Europe, the report noted that it signals a shift away from the US to circumvent the lower demand between the US and Canada. OAG added that Air Canada may have not imitated this move largely due to limited slot availability at European hubs.
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