Quantcast

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

Flight Centre tips ‘price war’ as first direct Melbourne to LA Delta flights go on sale
FAA reverses course on meeting prohibition, blaming rogue employee
US court blocks Biden administration's airline fee disclosure rule
JetBlue Issues Dim Outlook But Execs Remain Confident in Turnaround Plan
Delta to Resume Tel Aviv Flights April 1
Boeing CEO Ortberg outlines 2025 priorities after heavy losses
Storm Eowyn: Thousands of trains, flights and ferries cancelled as 100mph wind batters UK
Indian carrier long haul: IndiGo returns to profitability, plans long haul flights
These Frequent Fliers Are Done With Loyalty Programs
JetBlue accepting Venmo as payment method for flights purchased through mobile app
United Airlines stock rallies on results, as growing demand wasn’t just about premium seats
Delta Adds Another Alaska Route
Southwest to Reduce Pilot Head Count at Several Bases
Dublin Airport savings boost for holidaymakers – but passengers need to be quick
American Halts CRJ-200 Operations
Shanghai Airlines to Launch Casablanca Route
Delta employees to receive an average five weeks of pay in annual profit sharing
Akasa Air faces DGCA heat for lapses; warning letter issued to airline's accountable manager
Indigo Eyes European Market Amid Intensifying Competition with Air India
Air India to operate daily Delhi-Prayagraj flights for Maha Kumbh
Engine maker agrees to compensate WizzAir for grounded planes
Turkish Airlines’ flights are riddled with bedbugs, passengers say
British Airways frequent flyers react to Executive Club changes
Inside the short-lived, men-only flights where kids and women were banned but cigar and pipe smoking were rife
China steps up drive to break Boeing, Airbus grip on plane market
Heathrow’s New York service clings to spot in top aviation routes
Airline praises pilots in crash-landing where both died but nearly half the passengers survived
Mexico state airline to buy five Embraer planes next year
A record number of people are expected to fly over the holidays. That's good for travel stocks, but not for passengers.
American Airlines technical issue sparks travel chaos on Christmas Eve as flights heavily delayed after being grounded
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

ITA Airways announced on X that a radar failure at Naples Capodichino Airport may cause severe delays and cancellations, advising passengers to check flights online before traveling.

Jun 13, 2025

Emirates has announced the launch of three weekly flights to Siem Reap, expanding access to Angkor Wat and other cultural attractions via Dubai and Bangkok.

Jun 13, 2025

Japan Airlines has announced an autumn tour around Hokkaido, featuring chartered trains, buses, and regional bento meals.

Jun 13, 2025

EVA Air has announced its "Escape to Paradise" campaign on the social media platform X, promoting flights to Bali and highlighting the island's beaches, jungles, and culture.

Jun 13, 2025

Etihad Airways announced on the social media platform X that it will begin operating four daily nonstop flights between Abu Dhabi and Karachi starting October 1, increasing service to 28 flights per week.

Jun 13, 2025

San Bernardino International Airport has announced the introduction of new nonstop flights to San Francisco and Provo, Utah.

Jun 13, 2025