US Freeze Canada Travel as American, Delta, and Other Airlines Slash Routes to Major Cities in Canada Including Toronto and Montreal Amid Declining Demand to Tap Soaring Demand Across Europe, Brazil and Caribbean

By: Rana Pratap

American Airlines, Delta Air Lines, and other major carriers have announced route cuts to important Canadian cities like Toronto and Montreal, triggering a profound change in the dynamics of air travel. Due to a combination of shifting traveler preferences, political unrest, and economic pressures, the demand for cross-border travel is dropping. For the eleventh straight month, foreign arrivals fell by 12.7% in December 2025, according to Canada’s official tourist data. In order to capitalize on the rising demand in Europe, Brazil, and the Caribbean, airlines are shifting their attention to more lucrative foreign locations. As airlines adjust their networks, the decline in US-Canada air travel signals a fundamental shift in the North American aviation market, with destinations further afield gaining prominence.

The Deteriorating State of US-Canada Travel

The shift in travel demand between the US and Canada is clear in the latest figures. According to Canada’s official tourism data, December 2025 saw a 12.7% decline in international arrivals compared to the same month in 2024, marking the 11th consecutive month of year-over-year declines in cross-border travel. Both air and automobile traffic from the US to Canada took a hit, with the most significant reductions in US-resident trips by air and automobile.

• Non-resident air arrivals to Canada in December 2025 dropped by 1.1%, with US-resident arrivals specifically declining by 8.9%. Interestingly, overseas-resident arrivals saw a modest increase of 6.6%, slightly offsetting the decline from the US market.
• On the ground, US-resident trips to Canada by automobile fell 9% in December 2025. This follows a larger pattern of softening demand, where Canadians are also cutting back on their return trips from the US. Canadian-resident return trips from the United States were down 18.7% by air and 30.7% by automobile in December 2025.

This combined decline in both air and automobile traffic reflects broader economic uncertainty, including political tensions between the two countries and the weakening Canadian dollar, which has made travel to the US less affordable for many Canadians.

Major Route Cuts by American Airlines

American Airlines, one of the largest US carriers operating to Canada, has confirmed the suspension of key routes, most notably its twice-daily nonstop service between New York’s John F. Kennedy International Airport (JFK) and Toronto Pearson International Airport (YYZ). The final flight is scheduled for May 20, 2026, signaling the end of just over two years of operations.

This route, which had been operated using Embraer E175 regional jets, was initially launched in January 2023. Despite initial optimism, the service could not escape the pressures of declining US-Canada demand. American Airlines has cited “capacity pressure” and the increasingly “soft US-Canada demand” as the main reasons for discontinuing the route. The weakened Canadian dollar and ongoing political tensions have meant that fewer Canadians are making the trip to the US, and the route’s profitability has dwindled.

Delta Air Lines Cuts Salt Lake City to Toronto

Following suit, Delta Air Lines has announced the suspension of its year-round service between Salt Lake City (SLC) and Toronto (YYZ), with the last flight operating on November 5, 2025. Delta, like American Airlines, cited the “soft transborder demand” as the primary reason for ending the route.

This decision marks a continued trend of decreasing cross-border demand, as airlines respond to the challenges presented by the US-Canada market. Delta’s cuts further underscore the decreasing demand for travel between the two countries, which is being driven by both economic and political factors.

The Broader Decline in Cross-Border Travel

This year-over-year decline in travel between the US and Canada is a reflection of more than just fewer flights—it is indicative of changing traveler preferences and economic pressures:

• US-resident arrivals by air to Canada in December 2025 fell 8.9%, while US-resident automobile arrivals decreased by 9%. These numbers suggest a broader reluctance to travel to Canada, a trend that has been evident for much of 2025.
• On the flip side, Canadian-resident return trips from the US saw a sharp decline of 18.7% by air, and 30.7% by automobile. This marks the 12th consecutive month of year-over-year declines for Canadian residents returning from the US.

The holiday season saw temporary spikes in travel—Saturday, December 20, 2025, recorded the highest non-resident arrivals, with 18,000 US residents and 25,800 overseas residents arriving in Canada, reflecting the highest daily traffic for the month. However, these spikes were outliers in an otherwise declining trend. The overall year-end figures paint a grim picture for the Canadian tourism industry, with both Canadian residents and US visitors reducing cross-border travel.

American Airlines Shifts Focus to Europe, Brazil, and the Caribbean

In response to declining US-Canada demand, American Airlines has restructured its international network, focusing heavily on Europe, Brazil, and the Caribbean, where demand for air travel continues to increase.

American Airlines New International Routes (2026)

• Dallas-Fort Worth (DFW) to Athens (ATH), Greece – Seasonal service starting May 21, 2026.
• Philadelphia (PHL) to Budapest (BUD), Hungary – Summer seasonal service from May 21, 2026.
• Miami (MIA) to Milan (MXP), Italy – Year-round service beginning March 29, 2026.
• Dallas-Fort Worth (DFW) to Buenos Aires (EZE), Argentina – Extended summer service from May 21 to August 3, 2026.

These routes highlight American’s focus on capturing growing demand in Europe and South America, where international travel continues to see strong growth. Particularly noteworthy is the increase in travel to Milan and Buenos Aires, as South American and European destinations show resilient appeal to travelers looking for more diverse experiences.

Delta Air Lines Expands its International Network

Delta Air Lines is similarly expanding its international footprint with several new routes to Europe and the Caribbean in summer 2026:

• Boston (BOS) to Madrid (MAD), Spain – Launching May 6, 2026.
• New York (JFK) to Porto (OPO), Portugal – Launching May 21, 2026.
• Seattle (SEA) to Rome (FCO), Italy – Launching May 6, 2026.
• Seattle (SEA) to Barcelona (BCN), Spain – Launching May 7, 2026.

Delta’s continued Caribbean expansion is also notable. The airline is resuming services to 13 Caribbean airports, following airspace restrictions that had previously been in place. This is part of Delta’s broader strategy to expand leisure travel options, with a particular emphasis on Punta Cana (PUJ), Cancún (CUN), and other Caribbean destinations.

American Airlines Caribbean Expansion

• Miami to South Bimini (BIM) – New nonstop route starting February 2026.
• Expanded service to Eastern Caribbean destinations including Antigua (ANU), Barbados (BGI), and Anguilla Wallblake (AXA), offering more flights and additional capacity from Miami (MIA).

The Impact on Canada’s Tourism Industry

The ongoing decline in US-Canada travel is undoubtedly having a negative impact on Canada’s tourism industry. For Canadian tourism, these cuts are especially troubling as US residents have traditionally accounted for a significant portion of international arrivals. The 12th consecutive month of decline in Canadian-resident return trips from the US further emphasizes the severity of the situation.

At the same time, the slight increase in overseas-resident arrivals (up 6.6%) suggests that international travelers—particularly from Europe and Asia—are still keen to explore Canada. This trend could offer a glimmer of hope for the Canadian tourism industry, which will need to diversify its focus to maintain growth despite the reduced traffic from its southern neighbor.

Looking Ahead: The Future of US-Canada Air Travel

As we look toward the summer of 2026, the US-Canada travel market appears to be at a crossroads. While American Airlines and Delta Air Lines are pulling back from Canada, expanding their networks to Europe, South America, and the Caribbean, Canada will need to explore new strategies to maintain its relevance as a key tourism destination.

With diplomatic relations, economic trends, and changing consumer preferences all playing a role, both US and Canadian tourism boards will need to adapt their strategies for attracting travelers. This may involve enhancing cross-border collaborations, leveraging emerging travel markets, and tapping into international tourism opportunities as the global demand for air travel continues to evolve.

Key New International Routes:

American Airlines (2026 Expansions):

• Dallas-Fort Worth (DFW) to Athens (ATH), Greece
• Philadelphia (PHL) to Budapest (BUD), Hungary
• Miami (MIA) to Milan (MXP), Italy
• Dallas-Fort Worth (DFW) to Buenos Aires (EZE), Argentina

Delta Air Lines (2026 Expansions):

• Boston (BOS) to Madrid (MAD), Spain
• New York (JFK) to Porto (OPO), Portugal
• Seattle (SEA) to Rome (FCO), Italy
• New York (JFK) to Olbia (OLB), Italy

Caribbean Expansion:

• Miami (MIA) to South Bimini (BIM) – American Airlines
• Expanded Caribbean service (American Airlines and Delta)

As airlines recalibrate their strategies, US-Canada travel will continue to face turbulence, but the increasing focus on international destinations offers a pathway for both airlines and tourists to find new opportunities in a shifting global market.

Major Route Cuts to Canada & Exciting New International Expansions for 2026

Summary of Key New International Routes

American Airlines (2026 Expansions)

• DFW ↔ Athens (ATH), Greece
• PHL ↔ Budapest (BUD), Hungary
• PHL ↔ Prague (PRG), Czech Republic
• DFW ↔ Zurich (ZRH), Switzerland
• MIA ↔ Milan (MXP), Italy
• DFW ↔ Buenos Aires (EZE), Argentina

Delta Air Lines (Summer 2026 Expansions)

• BOS ↔ Madrid (MAD), Spain
• BOS ↔ Nice (NCE), France
• JFK ↔ Olbia (OLB), Italy
• JFK ↔ Porto (OPO), Portugal
• JFK ↔ Malta (MLA)
• SEA ↔ Rome (FCO), Italy
• SEA ↔ Barcelona (BCN), Spain

Caribbean Routes

• American Airlines:
  • MIA ↔ South Bimini (BIM) – February 2026
  • Expanded Eastern Caribbean service (e.g., Antigua, Barbados, Anguilla, etc.) – January 2026
• Delta Air Lines:
  • Resumption of flights to 13 Caribbean airports (January 2026)

US freeze on Canada travel has led American, Delta, and other airlines to slash routes to Toronto and Montreal due to declining demand. Airlines now tap into rising demand across Europe, Brazil, and the Caribbean.

In conclusion, the US freeze on Canada travel has led to American, Delta, and other airlines slashing routes to major Canadian cities like Toronto and Montreal, reflecting the broader trend of declining demand for cross-border air travel. The growing appeal of international destinations across Europe, Brazil, and the Caribbean has shifted the focus of these carriers, signaling a reshaping of the travel landscape. As airlines adjust to this changing market, it remains clear that the US-Canada route system will continue to face challenges, while international destinations enjoy a rise in demand.