Quantcast

Tensions with U.S., high airfares drive Canadians toward costly domestic travel

DOT probe seeks to determine if frequent flyer programs are fair to travelers
American Airlines flight diverted after passenger starts vaping
Russian Airline Wants $100 Million From Canada for Seizing Its Giant Cargo Plane
Airline CEO wants airports to cap passengers at 2 alcoholic drinks to limit on-board disruptions
Regulator cuts Malaysia Airlines' air operator certificate duration after probe
United Airlines flight attendants are prepared to strike. Here's why it's still unlikely.
2 workers killed, 1 injured in tire explosion at a Delta Air Lines shop in Atlanta
Emirates Will Buy 5 Airbus A380s From Lessor For $200 Million
Delta Air Lines named official airline of the WNBA
Pair Of C-Suite Officials Depart Wheels Up
LAX Receives Final Cars for People Mover Train
Alaska Airlines and Hawaiian Airlines merger clears Justice Department hurdle, now faces DOT
Alaska Airlines flight attendants reject new contract, union says there's 'more work to do'
Elliott Investment To Push For 10 New Boardroom Directors At Southwest Airlines
Alaska Air Backs JetZero Blended-Wing Design
AI in Aviation Line Maintenance: A Strategic Response to Delays, Satisfaction, and Staffing Challenges
Air taxi service plans for 2026 Los Angeles launch at USC, SoFi and LAX
VistaJet Flight Brings Home Americans in Prisoner Swap
Air Canada Blames Paris Olympics On Decreased Profits
Delta passengers sue airline over refund refusals after CrowdStrike meltdown
Microsoft fires back at Delta after massive outage, says airline declined ‘repeated’ offers for help
Korean Air Confirms A Spacious Lounge Is Coming To The New Terminal One at New York JFK
VAS Aero Services to Acquire an Additional 17 Airbus A320 Airframes, Bringing to 23 the Total Number of A320s Slated for Teardown and Harvested Parts Redistribution
Delta CEO says CrowdStrike-Microsoft outage cost the airline $500 million
Boeing Reports $16.9 Billion In Revenue For 2nd Quarter With 5,400 Commercial Aircraft Backlog
United Airlines says flight attendant in Terrell Davis incident is no longer employed and NFL legend’s ‘no fly’ ban is lifted | CNN
Nepal Plane Crash Kills 18 After Takeoff - Airline Ratings
Southwest Airlines is getting rid of open seating | CNN Business
CrowdStrike Outage Caused 10% Spike in Air Charter
Aircraft Engine Maintenance and Repair to Peak in 2026, Worsening Capacity Shortage for Commercial Aviation, Says Bain & Company
Tensions with U.S., high airfares drive Canadians toward costly domestic travel
Policy
Webp donaldtrump
President Donald Trump | Official Website

Relations between the United States and Canada have become strained following the imposition of tariffs by President Donald Trump on Canadian goods. The US was previously a popular destination for Canadian travelers, but recent developments have led many to opt for domestic travel instead. However, high domestic airfares in Canada pose a challenge.

On February 1st, the White House announced that "Trump is implementing a 25% additional tariff on imports from Canada." The President cited "Canada's heightened domestic production of fentanyl, and its growing footprint within international narcotics distribution" as reasons for the tariffs, which also affect Mexico and China. Some goods received partial exemptions; for example, tariffs on Canadian resources are 10% lower due to "encounters at the northern border with Canada" involving alleged illegal immigrants. On February 11th, another statement noted that 25% tariffs would be applied to aluminum and steel to protect the US sector.

In response to these tensions, many Canadians are reconsidering their travel plans. According to Leger, 48% of Canadians are less likely to visit the US than last year, while only 10% plan more trips south. This trend is most noticeable among those aged 55 and above.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

With international travel less appealing, 61% of Canadians are looking at domestic trips. Canada offers diverse tourist attractions comparable in distance to US destinations or short-haul European flights. Despite this interest, Canadian airfares remain high due to factors like government policy. Jim Scott explained that without subsidies for aviation in Canada, costs fall on passengers.

Skyscanner reports that average internal airfare in Canada costs C$262 (US$185), compared to US$162 in the US. Although last-minute deals exist for US flights as low as C$159 (US$112), high domestic prices may deter travelers unless fares decrease.

This issue predates current tensions; according to the Fraser Institute last year, factors such as restricted competition and heavy regulations contribute to Canada's high ticket prices for internal flights. They concluded that "policy reform for air travel is overdue."

Organizations Included in this History
More News

Lufthansa has been recognized as the world's most family-friendly airline by the World Airline Awards 2025.

Jun 17, 2025

Ethiopian Airlines has announced the launch of a new route to Hyderabad, expanding its network in India.

Jun 17, 2025

Ethiopian Airlines has been recognized at the SKYTRAX 2025 awards, securing four prestigious titles, including Best Airline in Africa for the eighth consecutive year.

Jun 17, 2025

Air India announced on X that flight AI171 from Ahmedabad to London Gatwick was involved in an accident shortly after takeoff.

Jun 16, 2025

Lufthansa Group Airlines has introduced new digital functions aimed at enhancing the travel experience for passengers.

Jun 16, 2025

Delta Air Lines has been recognized as the Best Global Airline for the Americas by the Airline Passenger Experience Association (APEX).

Jun 16, 2025