Air Canada cuts U.S. routes as fuel costs and tariff uncertainty weigh on demand

Air Canada is scaling back its transborder network, halting or delaying service on eight routes to the United States for the upcoming winter season.

The carrier cited a combination of elevated jet fuel costs and a sustained drop in passenger demand as the primary drivers for the schedule adjustments.

The affected destinations include key leisure and business hubs in the U.S. Midwest and Florida, regions that have traditionally seen robust traffic from Canadian travelers.

The move underscores the fragility of cross-border travel demand in the current economic climate.

With a comprehensive tariff agreement between the United States and Canada not expected to be finalized before the U.S. midterm elections in November, uncertainty continues to weigh on consumer confidence and corporate travel budgets.

Steve Verheul, Canada’s former chief trade negotiator, has indicated that the lack of a settled trade framework is contributing to softer travel volumes, as both leisure and business travelers postpone or cancel trips amid policy ambiguity.