Canadians are taking to the skies like never before, with domestic and international air travel soaring past pre-pandemic levels in a travel surge that signals a return to full-force tourism. However, while overseas and domestic flights are booming, travel to the US has hit a shocking roadblock, showing its first decline since 2021.

The latest data from Statistics Canada reveals that Canada’s largest airports recorded 4.3 million passengers in January 2025, marking a strong increase in travel activity. However, the breakdown of this boom paints an unexpected picture—while Canadians are rushing to book flights within the country and to overseas destinations, travel to the United States has begun to shrink.

Airports See Passenger Explosion as Canadians Ditch the U.S. for Other Destinations

Domestic flights are leading the charge, with 2.7% more Canadians flying within the country in January 2025 compared to the same period in 2024. While still 3.6% below pre-pandemic numbers from 2020, industry experts expect domestic travel to hit new highs later in the year.

The real shockwave in travel data, however, comes from overseas trips. Statistics Canada reports that:

Overseas travel jumped 1.2% year-over-year, surpassing pre-pandemic January 2020 levels by 6%.
Top destinations for Canadian travelers include Italy, France, and the UK, with spending on international trips surging nearly 20% from the previous year.

In contrast, travel to the U.S. has stalled, rising by a mere 0.6% year-over-year in air travel and still 5.1% below 2020 figures. More concerning for the U.S. tourism industry is the decline in Canadian road trips south of the border, marking the first drop in Canada-to-U.S. travel since March 2021.

Smaller Airports Are the Unexpected Winners in Canada’s Travel Boom

While major airports like Toronto, Vancouver, Montreal, and Calgary continue to dominate passenger numbers, it’s Canada’s smaller airports that are experiencing the most dramatic growth.

Winnipeg saw a staggering 9.2% increase in air traffic.
Ottawa followed closely with a 7.8% rise, while Edmonton recorded a 7.2% increase.
Halifax and Calgary have surpassed their 2020 numbers, posting growth rates of 6% and 4.6%, respectively.

This shift highlights a growing trend of Canadians opting for regional airports rather than major hubs, a pattern that could reshape future airline route planning.

Canadians Are Traveling More Than Ever – But Not to the U.S.

A separate Q3 2024 travel survey by Statistics Canada reveals that Canadians are not only flying more but traveling more overall. In the third quarter of 2024 alone:

Canadians took 105 million trips, both domestically and internationally—up 5.3% from 2023 and 3.4% higher than pre-pandemic levels in 2019.
Nearly 90% of all trips were within Canada, totaling 94.3 million domestic journeys.
Spending on domestic travel reached $27.4 billion, with accommodations, transportation, and dining topping the list of expenses.

However, while domestic and international travel continue to surge, the U.S. is losing its grip on Canadian tourists.

Travel to the U.S. rose only 0.6% year-over-year in January.
Road trips to the U.S. declined for the first time since 2021, falling 0.9% in January 2025.

This downward trend raises questions about whether the U.S. is losing its appeal as a destination for Canadian travelers.

Overseas Travel Sees Explosive Growth While Cruise Travel Skyrockets

The biggest winner in Canada’s travel boom is overseas travel, which recorded an astonishing 31.8% increase in Q3 2024 compared to 2023.

Italy, France, and the UK remain the most popular destinations, with over 2.6 million trips taken overseas in Q3 alone.
Spending on international travel hit $6.8 billion, up nearly 20% from last year.

At the same time, cruise vacations are experiencing an unprecedented surge, with Canadians spending a staggering $203.6 million on cruises—an increase of 68.3% from 2023 and more than double 2019 figures.

The rapid growth in luxury travel, high-end accommodations, and international experiences suggests that Canadians are increasingly prioritizing memorable, premium vacations over quick trips across the border.

Why Are Canadians Losing Interest in U.S. Travel?

Several factors may explain why the U.S. is struggling to regain Canadian travelers while overseas destinations thrive:

Weaker Canadian Dollar – The exchange rate continues to make U.S. travel more expensive for Canadians.
Rising Costs in U.S. Destinations – Hotel and dining costs in major U.S. cities have skyrocketed post-pandemic.
Increased Interest in European Travel – Canadians are choosing more immersive cultural experiences in Europe over weekend getaways to the U.S.
Political and Safety Concerns – Some Canadian travelers cite concerns about safety, political instability, and visa policies as deterrents to visiting the U.S.

With overseas and domestic travel showing record growth, industry experts warn that if the U.S. doesn’t address its declining appeal, it risks losing a significant portion of Canadian tourism dollars.

What’s Next for Canadian Travel?

As 2025 progresses, Canada’s air travel numbers are expected to climb even higher, with demand for overseas vacations and domestic trips continuing to rise.

However, the downward trend in U.S.-bound travel raises major concerns for cross-border tourism, signaling a potential long-term shift in Canadian travel habits.

With Canada’s airports shattering passenger records, the industry’s focus now turns to whether the U.S. can reverse its decline and reignite its status as a top destination for Canadian travelers.