09:00 AM EDT, 06/11/2025 (MT Newswires) -- This week's Statistics Canada release of its leading indicator of international arrivals for May offered fresh figures on evolving travel behaviors, said National Bank of Canada.

The data, which catalogs entries by transportation mode and traveler type, reveals a notable shift in sentiment toward cross-border air travel, note the bank.

Canadian air travelers returning from the U.S. declined by 24.2% year-over-year in May. While this drop is less severe than the 38.1% decline observed for land travel, it still marks a significant contraction in air-based re-entry volumes, pointed out National Bank.

Seasonally adjusted figures reinforce this trend. Since December, air entries from the U.S. by returning Canadians have fallen by a cumulative 23%, suggesting a sustained weakening in demand.

This decline, though less dramatic than that of land travel, points to a re-evaluation of short-haul international trips, stated the bank. Interestingly, the decline in air arrivals wasn't mirrored to the same extent among U.S. travelers entering Canada, where air travel remained relatively more stable.

Meanwhile, Canadians appear to be less "frigid" about international travel. Return trips from non-U.S. destinations rose by 9.8% year-over-year, although they were slightly down (-5.4%) from December.

Looking ahead, these travel undercurrents could have implications for domestic tourism, added National Bank. Reduced cross-border travel may redirect spending toward Canadian destinations, potentially bolstering local

economies and lending modest support to the Canadian dollar.