Search Travel Market Report

mainlogo
www.travelmarketreport.com
U.S.A.
English
Canada
English
Canada Quebec
Français
  • News
  • Packaged Travel
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Air
  • Training & Resources

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

by Bruce Parkinson  January 21, 2026
OAG Report Paints Revealing Picture of Canada’s Shifting Travel Landscape

Canadians are continuing to avoid travel to the U.S.

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.

Canadian Prime Minister Mark Carney speaking in Davos. Photo: World Economic Forum.

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.

  
  
Related Articles
CATO Expresses Strong Support for the Indigenous Tourism Association of Canada
Survey Finds Canadians Cooling on Summer Travel Spend
Fresh Tracks Canada Hosting Webinar for Travel Advisor Appreciation Month
Cardiff Welcomes 1st WestJet Flight & 1st Direct Canada Service in Nearly 20 Years
Air Serbia Flights Re-establish Connection between Serbia & Canada After 34 Years
As it Boosts Flights From Canada, Turkish Airlines Returns as RBC Canadian Open Sponsor
TCS World Travel Unveils 2027 Private Jet Expedition Lineup With 6 New Itineraries
Expedia Group’s Explore 2026: What the Future Holds for Travel Advisors
Expedia’s Explore 2026 Kicks Off with Focus on AI and the Future of Travel Experiences
TMR in Las Vegas for Expedia Group’s Explore 2026 Event

MOST VIEWED

  1. BREAKING NEWS: Flair Airlines Names Nicole Bursey as President of Flair Vacations
  2. Flair Names Jamie Fox Director, Agency Sales and Partnerships
  3. HX Expeditions’ Kent Phillips on the Joys Of Purpose-Driven Expedition Travel
  4. WestJet Cuts 15 U.S Routes Amid Declining Demand for Transborder Travel
  5. Katy Perry Praises Air Canada Crew After Witnessing Mid-Air Medical Emergency
  6. Nexion Hosts First Canada-Only Travel Advisor Event


Top Stories
Survey Finds Canadians Cooling on Summer Travel Spend
Survey Finds Canadians Cooling on Summer Travel Spend

A new TD survey finds rising fuel and living costs are prompting Canadians to cut summer travel spending, prioritize local travel and rethink vacation budgets.

Katy Perry Praises Air Canada Crew After Witnessing Mid-Air Medical Emergency
Katy Perry Praises Air Canada Crew After Witnessing Mid-Air Medical Emergency

The pop star who is dating former Prime Minister Justin Trudeau concluded her post: “Good for you Air Canada.”

Air Canada Customer Service Agents Reach Tentative Labour Deal
Air Canada Customer Service Agents Reach Tentative Labour Deal

“Air Canada’s customer service agents are the backbone of the passenger experience,” said Lana Payne, Unifor National President.

Twenty Years, 1.8 Billion Points: The Aeroplan Member Donation Program
Twenty Years, 1.8 Billion Points: The Aeroplan Member Donation Program

The program has empowered approved Canadian charities to set fundraising goals and redeem donated points for air travel, hotel stays, car rentals, merchandise, and more. 

Cardiff Welcomes 1st WestJet Flight & 1st Direct Canada Service in Nearly 20 Years
Cardiff Welcomes 1st WestJet Flight & 1st Direct Canada Service in Nearly 20 Years

The new route will operate 4X weekly with WestJet’s Boeing 737-8 MAX aircraft, restoring an important international connection between Wales and Canada.

Air Serbia Flights Re-establish Connection between Serbia & Canada After 34 Years
Air Serbia Flights Re-establish Connection between Serbia & Canada After 34 Years

Serbian Foreign Minister Marko Djuric told Kosovo Online at Belgrade Airport that the new route connects Serbia with one of the world’s largest economies.

TMR Subscription

Don’t miss out! Sign up for our free daily newsletter and get the latest Canadian travel industry news and event coverage delivered straight to your inbox. No spam — just what matters.

Subscribe to TMR

TMR OUTLOOKS, WHITE PAPERS & DESTINATION GUIDES
View All
Advertiser's Voice
A Conversation with Hyatt Inclusive Collection’s Amanda Morris and John Kirk
About Travel Market Report Mission Meet the Team Advisory Board Advertise Syndication Guidelines
TMR Resources Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
Editor@travelmarketreport.ca
Give Us a Call
647 255 8990
Drop Us a Note
Travel Market Report Canada Inc.
3080 Yonge St. Suite 6060 Toronto, ON M4N 3N1
© 2005 - 2026 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | Terms and Conditions
Cookie Policy Privacy Policy Manage cookie preferences