How Canada Vanishing Tourists Are Costing the US in Flights and Hospitality Sector: New Report

Canada’s vanishing tourists are already costing the US in both flights and hospitality. Airlines have cut over 320,000 seats on cross-border routes amid a sharp drop in demand, and forward bookings from Canada are down more than 70% for summer. Major carriers—Delta, Southwest, and American Airlines—have all downgraded their revenue forecasts for Q1, signaling how travel uncertainty and weakening economic confidence are beginning to weigh on the industry. Hotels are also feeling the effects, with national occupancy, room rates, and revenue slipping. According to a new report, even a 10% drop in Canadian travel could translate to 2 million fewer visits, $2.1 billion in lost spending, and 14,000 US job losses. While airlines still expect revenue to match or slightly exceed last year’s levels and remain optimistic about the rest of 2025, early signs of softening—especially in domestic and lower-fare segments—hint that the slowdown may be spreading beyond just US–Canada travel.