WestJet, the second-largest carrier in Canada, is axing some routes as Canadian travel to the U.S. declines due to rising tensions between the two countries.
The carrier is scrapping its planned seasonal service between Calgary and New York’s LaGuardia Airport. WestJet told Skift that customers impacted by the cancellation have already been notified and have been provided alternative options through its daily service between Calgary and JFK.
WestJet is also suspending its summer schedule for the following routes: Edmonton-Orlando; Edmonton-Montreal; and Montreal-Winnipeg.
For the U.S. cuts, WestJet did not explicitly say whether they were due to rising tensions between the U.S. and Canada, but did note that it observed an increase in bookings to other destinations.
“We have observed an increase in bookings to sun destinations such as Mexico and the Caribbean, and to transatlantic destinations such as Ireland, Scotland and Iceland and we remain focused on continuing to fly where there is demand,” WestJet said in a statement to Skift.
The carrier added that it was adjusting its schedules based on demand.
“It is common across the aviation industry to adjust schedules to service guest demand, and as a proudly Canadian airline, WestJet is committed to ensuring air travel remains accessible, affordable and safe for all Canadians,” WestJet said.
Airlines Respond to a Dip in Demand
Canadian visits to the U.S. have declined following President Donald Trump’s inauguration and his administration’s announcement of tariffs. Trump has also repeatedly made claims about wanting to make Canada the “51st state” of the U.S.
The number of Canadian residents returning from trips to the U.S. by vehicle declined 0.9% compared to last year, according to Canada’s official statistics bureau.
United Airlines CEO Scott Kirby said during the JPMorgan industrials conference March 11 that the carrier saw a “big drop” in Canadian traffic to the U.S.
Air Canada executive vice president of revenue and network planning Mark Galardo said during an earnings call in February that the airline planned to cut capacity in some U.S. leisure routes starting in March.
Porter Airlines, the third largest airline in Canada, has been lowering fares to the U.S. to keep bookings steady.
“Canadian consumers are still willing to travel to the United States, if the price is right,” Porter Airlines president Kevin Jackson previously told Skift.
He added that Porter has temporarily paused all marketing efforts promoting travel to the U.S., following feedback from customers that such advertising during the current political climate would be “tone-deaf.”
“Canadian consumers have made it clear to us that they don’t believe that we should be promoting travel to the United States,” Jackson said.
The U.S. Travel Association has warned that a 10% reduction in Canadian travel could mean 2 million fewer visits, $2.1 billion in lost spending, and 14,000 job losses.
Canada has been the top source of international visitors to the U.S., with 20.4 million visits last year. The association estimated that Canadian visits to the U.S. generate $20.5 billion in spending and support 140,000 American jobs.
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more al fanous car blog sector financial performance.
Read the full methodology behind the Skift Travel 200.
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