Air Canada has joined a growing list of major global airlines—including WestJet, United, American, Delta, Southwest, Lufthansa, and Air France-KLM—in slashing routes to the US amid a sharp plunge in travel demand driven by mounting tariffs, soaring costs, and strained diplomatic relations. As international travelers increasingly avoid U.S. destinations due to rising airfare, expensive lodging, and tightening border policies, airlines across North America, Europe, and the Pacific are scaling back their transborder operations, marking a major shift in global tourism patterns for 2025.

Air Canada Scales Back Amid Canadian Backlash

Air Canada recently reported a sharp drop in U.S.-bound bookings—down by a “low teens” percentage, according to its CEO—as Canadian travelers reconsider their plans due to the strengthening U.S. dollar, mounting cross-border tariffs, and political rhetoric. The downturn in demand has forced the airline to downgrade its financial forecast, even as it sees strong interest in Latin American and Caribbean routes for the 2025-26 winter season.

WestJet followed suit, suspending at least nine routes to U.S. destinations from hubs like Vancouver and Calgary. These cancellations reflect a shift in Canadian travel preferences, especially after political remarks strained bilateral sentiment earlier this year.

Jetstar Fully Exits U.S. Market

Australia’s budget carrier Jetstar, a Qantas subsidiary, has officially pulled the plug on its last remaining U.S. route. The Sydney to Honolulu service will be suspended in October 2025, following the termination of its Melbourne–Honolulu flights earlier in April. The move ends Jetstar’s 19-year connection with the U.S., which began in 2006 and once included routes from Brisbane and Melbourne.

The airline cited weak demand, a strong U.S. dollar, and the rising cost of Hawaiian vacations as reasons behind its full withdrawal. A spokesperson also confirmed that Boeing 787 Dreamliner aircraft used on these routes will be redeployed to high-demand routes in Asia.

Major U.S. Airlines Slash Capacity and Schedules

Airlines based in the U.S. are also making cuts in response to declining travel demand and operational constraints:

• United Airlines is canceling 35 daily flights from Newark Liberty International Airport, its East Coast hub, citing air traffic controller shortages, radar outages, and airport congestion. Most of the affected routes are domestic, but the ripple effect limits U.S. connectivity for international travelers as well.
• American Airlines has withdrawn its financial guidance for 2025, pointing to deteriorating demand among economy-class leisure travelers. The airline is now adjusting its schedules downward.
• Delta Air Lines has shelved its previously planned network expansion. Executives noted that macroeconomic conditions, including slowed consumer travel and uncertainty around global trade, were key factors.
• Southwest Airlines is cutting flights, especially to Hawaii, and has pulled its long-term forecast altogether. The airline is trying to offset revenue losses through cost-saving initiatives.
• Frontier Airlines has reduced its July–August capacity by 3.5%, citing sluggish ticket sales during what is traditionally the busiest period for U.S. travel.

European Airlines Follow Suit

Airlines across Europe have also responded to diminishing interest in U.S. travel:

• Air France-KLM recorded a 2.4% drop in transatlantic bookings to the U.S. for late spring and early summer. The group noted travelers are opting for closer destinations in Europe or the Mediterranean due to cost sensitivity.
• Lufthansa Group acknowledged a reduction in inbound travel to the U.S., although outbound traffic from the U.S. to Europe remains stable or rising.
• Norse Atlantic Airways has implemented sweeping route cuts to U.S. cities, suspending flights from Athens, Berlin, and Paris to New York and other cities during the winter season.
• International Airlines Group (IAG), the parent company of British Airways and Iberia, noted premium cabins continue to perform well, but economy-class bookings to the U.S. have seen a decline.

Major Airlines Cutting Flights to the US in 2025 Due to Falling Travel Demand

Broader Industry Forecast: US Inbound Travel to Fall 15.2%

A recent forecast from Tourism Economics predicts that international travel to the U.S. will fall by 15.2% by the end of 2025, a substantial hit to the American tourism industry. The report attributes this sharp decline to:

• Restrictive visa policies and anti-immigration rhetoric
• Strengthening U.S. currency
• Trade-related tensions, especially with Canada and Mexico
• Soaring accommodation and entertainment costs in major destinations like Hawaii, New York, and San Francisco

Even traditionally reliable feeder markets like Japan and Australia have seen a downturn. Honolulu, once a hub of Pacific tourism, has witnessed fewer flights from Sydney and Melbourne, and Canadian travel to Hawaii has tapered off notably.

Global Travel Preferences Are Shifting

Instead of heading to the U.S., travelers from Canada, Europe, and Australia are increasingly choosing alternative international destinations perceived as more welcoming and cost-effective. Southeast Asia, Latin America, and intra-European travel have all recorded upticks, filling the void left by declining U.S. inbound tourism.

In light of these trends, airlines are quickly adapting to new consumer patterns by reallocating aircraft and resources toward markets with higher yields and stronger demand.

Air Canada has joined major global carriers in cutting US routes as international travel demand plunges due to rising tariffs, high costs, and growing political tensions. Airlines cite weakening bookings, expensive destinations, and shifting traveler preferences as key drivers of the reductions.

The United States, long a dominant force in global tourism, is now facing a challenging environment where political, economic, and logistical factors are combining to push travelers away. Air Canada’s recent decision to cut U.S. routes joins a broader chorus of global airlines responding to the same trend: dwindling demand for American destinations.

Unless shifts occur in policy, affordability, and sentiment, more route reductions and airline exits from the U.S. market may be on the horizon.

The post Air Canada Joins American, United, Delta, Southwest, Lufthansa, and Air France in New Wave of Route Cuts to US as Travel Demand Plunges Amid Tariffs and Soaring Costs appeared first on Travel And Tour World.