(Reuters) -Air Canada ( ACDVF ) reported a drop in second-quarter profit on Monday, weighed down by weak passenger traffic to its key U.S. market amid strained trade relations between the two countries.

Canadians are increasingly boycotting U.S.-made goods and canceling trips to the United States following President Donald Trump's tariffs on Canada and his controversial remarks suggesting the country should be annexed.

The travel slowdown became pronounced during the summer season, typically the most lucrative period for carriers.

For the third quarter of 2025, the carrier plans to increase its available seat miles (ASM) capacity between 3.25% and 3.75% from the same period last year.

Canada's largest carrier reported a profit of C$0.60 ($0.4368) per share during the second quarter, compared with C$0.98 per share a year ago.

Air Canada's ( ACDVF ) total operating revenue was C$5.63 billion for the quarter ended June, compared with C$5.52 billion a year ago.

($1 = 1.3735 Canadian dollars)