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Canada to U.S. Travel Decline Impacting Airlines and Economy

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Introduction

President Trump’s tariffs and insistence that Canada should become the 51st American state is fueling a remarkable rally-round-the-flag effect. Canadian patriotism is skyrocketing alongside disdain for all things American throughout the Great White North and Canadians’ desire to visit the U.S. is absolutely tanking, new data suggests. (Source)

Canadian/American Relationship Unraveling

A survey conducted between May 1st–3rd by Leger Marketing for the Association for Canadian Studies asked 1,626 Canadians how they felt about traveling to the United States and below is how they responded, broken down by age, along with the overall average for each question (Source).

For citizens of two countries that have shared a historic relationship, this is a marked turn in sentiments.

Future Flight Bookings Have Collapsed

Advance bookings for Canada-U.S. flights in April-September are down over 70% compared to this time last year, per aviation data firm OAG, and a mere 10% drop in Canadian visitors could cost U.S. businesses as much as $2.1 billion in revenue (and 14,000 jobs cut) according to the U.S. Travel Association – and airline stocks are suffering as a result.

Airline Stocks Down 30%

Delta Air Lines, United Airlines and American Airlines are down 29.6%, on average, since the beginning of February!

  • American Airlines (AAL): DOWN 33.9%
  • United Airlines (UAL): DOWN 29.5%
  • Delta Airlines (DAL): DOWN 28.8%
  • Average: DOWN 29.6%

Conclusion

Reluctance to visit the U.S. this summer may not be a strictly Canadian phenomenon, with worries about political strife and detainment upon entry an increasingly popular theme on travel message boards and chat groups in recent weeks. If those fears materialize into less demand, there could be big consequences for the entire $1.2 trillion U.S. travel industry.

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