OAG Report Paints Revealing Picture of Canada’s Shifting Travel Landscape

There’s never a dull moment in the travel industry. The last few years have proven that beyond a doubt, and there’s no let-up in sight.

From the unforeseen depths of the pandemic when the industry basically shut down, to a recovery and renaissance that lays bare the seminal importance of travel to the human psyche, it’s been a wild ride.

For Canadians, the past couple of years have been unlike any others in recent memory, with geopolitical tensions playing a leading role.

A new report by OAG chief aviation data analyst John Grant reveals the extent to which the Canadian travel landscape has shifted.

While the U.S. remains an important destination for corporate travellers and snowbirds, there are nearly half a million fewer air seats from Canada to the U.S. allocated for the first quarter of 2026.

Low-cost carrier Flair Airlines has slashed its U.S.-bound capacity by 58%, forcing it to seek other destinations and to recently shift focus in an attempt to attract cost-conscious corporate travellers on domestic routes. Westjet U.S. capacity is down 19%, while Air Canada, this country’s largest carrier, has trimmed 7% of its U.S. seats.

In the U.S., leisure markets like Vegas and Orlando have suffered the most, while destinations as far flung as Mexico, Costa Rica, parts of Europe and Japan have seen marked increases in Canadian visitation.

We’re travelling at home more, too, with first quarter OAG stats revealing that 12.4 million – more than 50% – of Canada’s total capacity of 23.6 million seats in the year’s first quarter are dedicated to travel within the country.

A year ago, more of us would have seen this as a temporary situation. The U.S. has always been a favourite destination for Canadians, and many have longstanding relationships with our neighbours and a great love for the myriad natural and man-made wonders that America has to offer.

Sadly, it’s looking less temporary. This week with a social media post featuring a doctored image showing the American flag covering Canada was pushed out from the US administration account. The result? Our level of patriotism and our sovereignty has never been higher.

Our defiance is rising too, and at the highest level. Prime Minister Mark Carney earned a rare standing ovation at the World Economic Forum yesterday for a speech calling on middle powers like Canada to join together.

America’s travel and tourism industry is redoubling its efforts to bring Canadians back, through marketing campaigns, incentives and engagement with Canada’s travel trade.

As we enter this new year, we can only hope that cooler and clearer heads will prevail, and the pendulum will swing back toward democracy and diplomacy.. There are some very big fences to mend.