With the Trump administration continuing to sow upheaval in domestic and international relations, people from all over the world have been showing reserve about travel to the U.S.
Between the imposition of tariffs and Trump’s repeated remarks about Canada becoming the 51st state, passenger bookings between Canada and the U.S. are down by more than 70% from the year-earlier period.
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Mark Galardo, executive vice president of revenue and network planning for Air Canada (ACDVF) , recently told investors that a prolonged period of reduced travel to the U.S. could force the airline to reduce capacity and move it “into other sectors [where] we see strength.”
Germany, Denmark, Portugal, the UK and the Netherlands have updated their travel advisories and warned their citizens that even a small mistake with documents at the U.S. border could lead to refusal of admission at best and a long period in immigration detention at worst.
The countries moved after several high-profile incidents in which their citizens were detained at the border when trying to enter America legally.Â
Related: Traveling to the U.S.? More countries are saying not to
“Always make sure you have the proper entry documents,” the new Dutch advisory now reads. “[Is] something not correct? That may be reason for the U.S. authorities to refuse you entry.”
Virgin Atlantic: Travel to U.S. weakens
In this climate Virgin Atlantic Chief Financial Officer Oli Byers told investors that the British airline has “had weeks where [travel from and to the U.S.] been flat” and “had a few weeks where it’s been negative.”
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The airline is often the choice for Brits who need to pass through the U.S. to holiday destinations in the Caribbean, like St. Lucia and Turks and Caicos. The number of those hesitant to do so has not gone unnoticed by Virgin Atlantic.
While border worries are fueling some of the demand falloff, the threat of tariffs and rising prices also has played a role as customers are opting for less expensive destinations.
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‘Natural reaction to consumer uncertainty in the U.S.’
“We think that’s quite a natural reaction to the general consumer uncertainty there is in the U.S. at the minute,” Byers said.
While the airline posted record revenue of £230 million (U$297) for all of 2024, recent uncertainty has caused it to slash its quarterly profit estimates at the start of March.
Byers said he still expected profit from travel between the UK and the U.S. to rise in 2025 from 2024, but the start of the year proved particularly rocky.
In 2025 to date the S&P 500 index for passenger airlines has been down nearly 20%. The overall S&P 500 is off around 5%.Â
Another large Canadian airline, Calgary-based WestJet recently cut routes between Edmonton (YEG) and Orlando International Airport (MCO) and Calgary (YYC) and New York’s LaGuardia Airport (LGA).
The carrier had unveiled the routes last year in anticipation of a great summer season. The cutback reflects the sudden cliff-like drop in Canadians who are interested in taking those flights.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
