MONTREAL, May 9 (Reuters) - Air Canada ( ACDVF ) is seeing
a "low teens" percentage decline in bookings over the next six
months for trips across the U.S. border amid trade tensions and
a weaker Canadian dollar, the airline's CEO said on Friday.
Canada's largest carrier on Thursday lowered its annual
adjusted core profit forecast and posted first-quarter revenue
below analysts' estimates on softer trans-border traffic.
Air Canada ( ACDVF ) previously said its decline in U.S.-bound
bookings over the next six months mirrored an industry-wide drop
of roughly 10%.
"Uncertainty was for sure the main theme during the first
quarter," CEO Mike Rousseau told analysts.
"We are experiencing booking declines on the trans-border
market in the low teens on average over the next six months."
Canadians are boycotting U.S.-made goods and cancelling
trips south of the border after President Donald Trump's tariffs
and his suggestions that Canada should be annexed by the United
States.
Overall, booking trends remain stable, given Air Canada's ( ACDVF )
diverse network and exposure to international destinations,
where demand remains strong. Results were solid in Mexico and
the Caribbean as Canadians look for alternative destinations,
the carrier said.
North American carriers have been trimming flight schedules
amid weakening U.S. domestic bookings, scrapping financial
forecasts and tightening cost controls - including on rising
labor expenses - to safeguard margins.