{"id":32153,"date":"2025-07-29T15:58:08","date_gmt":"2025-07-29T15:58:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/32153\/"},"modified":"2025-07-29T15:58:08","modified_gmt":"2025-07-29T15:58:08","slug":"air-canada-sees-decline-in-u-s-bound-seat-sales-amid-tariff-tension","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/32153\/","title":{"rendered":"Air Canada sees decline in U.S.-bound seat sales amid tariff tension"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Air Canada on Tuesday reported profit of $186-million for the three months ending on June 30, compared with $410-million in the year-earlier periodAdrian Wyld\/The Canadian Press<\/p>\n

Air Canada AC-T<\/a> saw an 11-per-cent decline in U.S-bound seat sales in the second quarter amid trade and sovereignty tensions spurred by U.S. President Donald Trump<\/a>.<\/p>\n

Canada\u2019s largest airline posted a 2-per-cent rise in overall operating revenue as travellers chose domestic or overseas destinations. <\/p>\n

\u201cIn the transborder market, we continue to see less demand for trips to the U.S.,\u201d said Mark Galardo, Air Canada\u2019s chief commercial officer.<\/p>\n

Airlines are using AI to set ticket prices. Here\u2019s how you can avoid price manipulation when booking flights<\/a><\/p>\n

Air Canada on Tuesday reported profit of $186-million for the three months ending on June 30, compared with $410-million in the year-earlier period. Adjusted for a tax settlement, profit was $207-million, or 60 cents a share, compared with $369-million (98 cents) in the same period a year ago.<\/p>\n

Analysts had expected adjusted profit of 72 cents a share. <\/p>\n

Investors reacted to the results, released on Monday night, by sending Air Canada\u2019s share price down by more than 10 per cent in early trading on the Toronto Stock Exchange. <\/p>\n

\u201cThis second quarter was not business as usual,\u201d Mr. Galardo told analysts on an earnings conference call on Tuesday morning. \u201cWe navigated through a period of significant economic and geopolitical uncertainty and we contended with reduced demand for transborder travel.\u201d<\/p>\n

Other headwinds included reduced demand for travel to the Middle East and India amid geopolitical turmoil, increased competition in China and Hong Kong, and currency fluctuations, he said.<\/p>\n

Mr. Galardo said the drop in U.S. travel was expected and accompanied by an 8-per-cent decline in seat capacity and better per-seat yields. <\/p>\n

Canadians have adopted an elbows-up stance against Mr. Trump\u2019s threats to make Canada the 51st state and crush its industries with tariffs. They have shunned U.S. visits and products and lauded campaigns to spend their money at home.<\/p>\n

\u2018Elbows up\u2019 vacations a boon for Canada\u2019s hospitality sector, June data show<\/a><\/p>\n

According to Statistics Canada, the number of Canadians crossing the border by plane has fallen through the first five months of the year, and is down in April and May by 14 per cent and 24 per cent, respectively, compared to a year ago. Trips by car, which comprise three-quarters of travel to the U.S., fell by more than 35 per cent for these months. <\/p>\n

The diminished U.S. market is significant for Canada\u2019s airlines because it was the destination for 75 per cent of all trips abroad by Canadians in 2024. <\/p>\n

Air Canada responded to the reduced demand by deploying its fleet to domestic and overseas destinations, adding flights to Naples, Prague and Manila.<\/p>\n

Sales to Transatlantic and Latin American destinations rose by 5 per cent and 11 per cent, respectively, while domestic seat sales rose by 3 per cent, from a year ago. <\/p>\n

Not shy about travelling to the U.S.? Flight prices have dropped to some destinations<\/a><\/p>\n

Mr. Galardo said Air Canada is seeing a rise in demand for off-season seats to southern Europe as travellers seek mild temperatures and smaller crowds. <\/p>\n

Overall passenger revenue, which excludes cargo and other sources, rose by 1 per cent on a 2.5-per-cent increase in seat capacity. The planes, on average, were 85-per-cent full, little changed from the year-earlier period. <\/p>\n

\u201cWe made the right early calls to match our capacity to the evolving demand landscape,\u201d Mr. Galardo said. <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Air Canada on Tuesday reported profit of $186-million for the three months ending…\n","protected":false},"author":2,"featured_media":32154,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-32153","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/32153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=32153"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/32153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/32154"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=32153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=32153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=32153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}