How The Decrease in Canadian Flights to the U.S. Can Impact American Businesses

Veuer

The United States’ relationship with its neighbors to the north has been deteriorating for months, due to President Trump and both his trade war and threats of making Canada the 51st state. Now aviation data firm OAG reveals bookings for flights from Canada to the US have plummeted. Veuer’s Tony Spitz has the details.

Transcript

00:00The United States' relationship with its neighbors to the north has been deteriorating for months

00:04due to President Trump and both his trade war and threats of making Canada the 51st state.

00:09Now, aviation data firm OAG reports that bookings for flights from Canada to the U.S. have plummeted.

00:16According to the report, U.S.-bound bookings from Canada between April to September

00:20have dropped 70% over the same period last year.

00:23What's more, airlines that service those routes are also lowering their capacity,

00:27an indicator that they foresee this lower demand perpetuating.

00:30So what does this mean for the U.S. tourism industry?

00:33Well, according to travel news site The Points Guy,

00:35if the United States loses just 10% of Canadian tourists,

00:38American businesses will also lose $2.1 billion in revenue.

00:43Not to mention the airlines that also rely on those travel routes will also suffer.

00:47Delta and United, for instance, have already reported 30% to 40% losses over the same period last year.

00:53Economists believe that economic uncertainty and Trump's trade war are to blame,

00:58casting a shadow on the financial future security of Americans,

01:01meaning it's unlikely that many will book a trip six months from now.

01:04If they are uncertain, their financial situation will be the same at that time.

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