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Air Canada bookings to US decline by 'low teens' on trade tensions, CEO says
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Air Canada bookings to US decline by 'low teens' on trade tensions, CEO says
May 26, 2025 5:05 AM

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.

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