Air Transat exits U.S.; WestJet scales back transborder network as Canadian demand weakens

WestJet's network reshuffle removes ~32% of its U.S. capacity (15 routes), and Air Transat’s full U.S. exit — though small for Transat at ~1% of capacity — forces immediate schedule, fleet and revenue redeployments for Canadian carriers and their U.S. partners. (See WestJet cuts: source:a4330852-aac6-4dea-bd89-aa85dd11bf07)

Transborder demand is declining materially: Statistics Canada reports a sharp drop in Canadian visitors to the U.S. at the start of 2026, a trend that predates recent political tensions and is reshaping passenger flows toward other international and domestic markets. (See Statistics Canada: source:130f66ad-d339-475c-b949-59ed3cc11db8 and broader demand shift: source:aa38c9ae-9309-4f35-9357-8b6ac7b24864)

The adjustments have direct commercial implications for leisure carriers and opportunistic competitors: Air Transat’s retrenchment feeds into its ongoing profitability plan, while smaller carriers (notably Porter) are selectively adding U.S. routes to capture redirected traffic. (See Transat profitability context: source:8a715e5b-5383-4b80-9d88-b6a0c14211b2 and Porter expansion: source:c1ad5922-c361-4d41-a259-a371f79c414d)