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Air Transat Exits U.S. Market Amid Canada Travel Decline

Yahoo Finance •
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Air Transat will cease all U.S. flights by June 2026, marking another major blow to transborder travel between Canada and the United States. The Montréal-based carrier will phase out its remaining routes to Florida from Montréal and Québec City, ending service to Orlando and Fort Lauderdale by late spring.

This decision reflects Canada's ongoing travel slump to the U.S., with Canadian airlines operating 10% fewer seats to American destinations compared to 2025. The decline stems from President Trump's trade policies, including 25% tariffs imposed in February 2025, and repeated diplomatic tensions. Air Transat's spokesperson Marie-Eve Vallières stated the carrier's U.S. presence represents only 1% of available seat-kilometer capacity, describing the market as "very marginal" and "more fragile in the current context."

While Air Transat exits, other carriers are taking different approaches. Air Canada is launching new routes to San Antonio, Columbus, and Cleveland, while American Airlines has partnered with Porter Airlines to expand Canadian connections. The broader industry data shows WestJet cutting 19% of U.S. capacity, Flair Airlines reducing by 58%, and Air Canada trimming 7%. Air Transat is meanwhile expanding to Mexico, the Caribbean, and new destinations like Senegal, Albania, and Iceland, focusing on markets where it maintains stronger positioning.