Market News

(Bloomberg) — Fewer Canadians are flying to the US as an escalating trade war between the nations alters vacation habits.

Air Canada has seen the transborder market soften, and WestJet bookings have shifted from the US to other destinations, according to spokespeople from Canada’s top two passenger air carriers.

Bookings made from Canada to the US fell by 13% in February and March compared with a year ago, according to data from Canadian website FlightHub.com. Searches for travel within Canada surged over the same period, toppling the US as the most-searched destination.

“The timing and magnitude of the booking decline, especially following the February 1 tariff announcement, suggest consumer confidence in cross-border travel was significantly impacted by geopolitical uncertainty,” FlightHub Chief Executive Officer Henri Chelhot said in a statement.

The change in travel patterns is part of a larger boycott of American products in response to US President Donald Trump’s tariffs on Canadian goods and his desire to annex Canada. “Donald Trump wants to break us so America can own us,” Prime Minister Mark Carney warned at a campaign rally this week.

For airlines, the drop in US flight demand could hurt profits at a time when their bottom lines are already under pressure from weakness in the Canadian dollar and recession fears.

Air Canada, the country’s largest air carrier, said in an email that it’s responding to softer transborder demand by using smaller aircraft or reducing route frequency. For example, its previously non-stop flight between Vancouver and Washington, DC, now includes a stopover in Toronto. The airline also reduced capacity for routes to US leisure destinations such as Florida, Las Vegas and Arizona, it said in its latest earnings call.

WestJet has adjusted its schedule to fly more to Mexico, the Caribbean and transatlantic destinations, a spokesperson said by email.

Jet travel isn’t the only mode of transportation affected by Canadians’ boycott. Cross-border road trips by Canadian residents in February plunged 23% year over year, according to Statistics Canada.

—With assistance from Mathieu Dion and Mary Schlangenstein.