Air Canada Faces Booking Decline Amid Trade Tensions

Air Canada is witnessing a noticeable decline in bookings to the United States over the next six months, according to CEO Mike Rousseau. The decrease, estimated in the 'low teens' percentage, reflects broader industry trends amid ongoing trade tensions and a weaker Canadian dollar.

In response, the airline has adjusted its financial forecast after reporting first-quarter revenues that fell short of analyst expectations. This decline is partly driven by reduced trans-border traffic as Canadians boycott U.S. goods and reconsider travel plans after President Donald Trump's tariffs and controversial remarks.

Despite the challenges in the U.S. market, Air Canada continues to see stable booking trends overall, with strong demand for international travel to destinations like Mexico and the Caribbean. The carrier and others in North America are streamlining operations and managing costs to protect profit margins in a tumultuous economic landscape.

(With inputs from agencies.)