Since the start of 2025, Canadian airlines have seen softening demand for leisure travel to the United States. This has largely been driven by shifting trade policy and economic uncertainty under the current US administration. In response, carriers have redirected capacity south into Latin America and the Caribbean, and even during the northern winter season, the expansion is set to continue.
According to IATA scheduling, the Northern Hemisphere winter season begins on October 26, and data show solid seat growth in these markets as airlines move away from traditional US sun destinations. All four major Canadian carriers are participating in the shift. Cirium data indicate that Air Canada, WestJet, Porter Airlines, and Air Transat together will add around 36% more seats to Latin America this winter while collectively cutting more than 1,500 flights to the US.
Major Cuts Hit US Routes as Canadian Airlines Shift Capacity
WestJet has made some of the highest cuts to its US network in recent months. As previously reported by Simple Flying, the airline has adjusted its schedule in recent months due to weaker demand, and those changes are continuing into winter. Compared to last winter season, it is operating about 13.3% fewer flights (roughly 1,050 services) and 16.3% fewer seats (around 209,000). Edmonton–Las Vegas has lost more than a third of its capacity, while Edmonton–Atlanta has lost around 61 flights, leaving only about 87 services this winter, with seat capacity reduced to over 13,600.
In addition, frequencies to Los Angeles, Phoenix, and Minneapolis have also been reduced. Winnipeg is another market seeing fewer flights. Winnipeg–Atlanta has fallen from 104 flights to 64, with seat capacity cut nearly in half. Winnipeg–Los Angeles has been suspended since June. Ottawa–Fort Myers, Regina–Orlando, and Vancouver–Santa Ana are also off the schedule.
Besides, Air Canada has also scaled back US services this winter and cut several secondary routes outright. Toronto–Jacksonville has been dropped, while Montreal has lost connections to Detroit and Minneapolis. Toronto–Indianapolis and Vancouver–Tampa have also been withdrawn. Overall, on other transborder services, the airline has lowered capacity by switching to smaller aircraft or reducing weekly frequencies.
New Routes, More Seats: Canadian Carriers Grow In The South
Canadian carriers have redirected much of the lost US capacity into Latin America and the Caribbean. Collectively, the four airlines are adding more than 4,000 flights to Latin America alone during winter. Earlier this year, in May, Air Canada announced the launch of 13 new routes and four entirely new destinations in the region, marking its most extensive seasonal schedule to date. The airline is offering 16% more seat capacity than last winter, with services spanning more than 80,000 weekly seats across 55 daily flights.
The new routes include services to Santiago, Pointe-à-Pitre, Fort-de-France, Nassau, Montego Bay, and Huatulco, while new destinations joining the airline’s network are Rio de Janeiro, Cartagena, Guatemala City, and Guadalajara. Notably, Air Canada is also seeing Latin America as an opportunity to expand its sixth freedom traffic. It reported a 12% year-over-year increase in revenues from these markets in the first quarter of 2025 and sees potential for further growth.
Among its new launches this winter is Toronto–Guadalajara, which Chief Commercial Officer Mark Galardo described earlier this year as well-suited for both local demand and international connections. He noted that the route is timed to connect into Air Canada’s wider global network, creating what the airline sees as “a decent proposition in the Sixth Freedom play between Europe and Mexico.
Canadian Airlines Shift Capacity to Latin America Amid US Demand Softening
