Air traffic between Canada and the United States has slowed considerably at the start of 2026. According to data published by OAG and reported by the trade press, Canadian carriers reduced their capacity to the American market by approximately 10% in the first quarter, representing a loss of nearly 450,000 seats in three months. This significant trend raises questions, particularly in the current uncertain economic and political climate.
Summary
A measurable contraction of cross-border capacities
According to OAG, this decrease represents the equivalent of approximately 5,000 fewer seats each day on flights between Canada and the United States. The adjustments made by airlines affect both leisure and business travel, which has historically been very strong between the two countries.

According to the trade press, this capacity reduction comes as carriers face a combination of adverse factors: high operating costs, volatile demand and persistent macroeconomic uncertainties.
Different adjustments depending on the companies
OAG data shows that the decline is not uniform. WestJet reduced its capacity to the United States by approximately 19%, Air Canada by 7%, while Flair Airlines saw a much sharper drop in this market as part of a strategic refocusing. Flair Airlines prioritized redeploying its capacity on its domestic Canadian network.
Leisure-focused American destinations are among the hardest hit. Las Vegas and Orlando are experiencing the largest decreases in seats departing from Canada, while major hubs like Newark, Atlanta, and Los Angeles are also among the declining markets.
The Canadian domestic market in contrast
Meanwhile, OAG is seeing growth in domestic traffic in Canada. Domestic capacity increased by approximately 3% year-over-year, reaching over 12 million seats in the first quarter of 2026. Domestic flights now account for more than half of the total capacity of Canadian carriers.
This rebalancing reflects a strategy of caution: favouring markets deemed more predictable and less exposed to cross-border political and economic risks.
A political context that fuels questions
While no official analysis establishes a direct link between the reduced capacity and the American political situation, several observers suggest a climate of uncertainty that could affect the confidence of both airlines and travelers. The prospect of more protectionist policies, combined with a strong US dollar, could weigh on Canadian tourism demand to the United States.
For tourism and business travel professionals, this development is a signal to watch. Air connectivity remains a key indicator of the health of tourism flows and economic exchanges between the two countries.
Updates
Article written on January 9, 2026 based on data published by OAG and analyses relayed by the specialized press.
Sources

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