Air Canada bookings drop as tourism to US plunges, NYC already feeling the sting

New York Post - May 9th, 2025

Air Canada has revised its 2025 profit forecast downward due to a significant decline in bookings for US-bound flights. This drop, attributed to heightened tensions over President Trump's policies and rhetoric, including tariffs and comments on annexing Canada, has led to a "low teens" percentage decline in upcoming bookings. The airline reported a 4.6% decline in passenger revenue on Canada-US routes in the first quarter, with traffic falling by 7%. Consequently, New York City, which relies heavily on Canadian tourists, is experiencing a notable decrease in visitor projections for 2025, impacting its tourism and hospitality sectors.

The strained US-Canada relations have broader implications for both Air Canada and New York City's economy. NYC Tourism now expects only 64.1 million visitors in 2025, down from the 67.6 million initially forecasted, with a significant portion of the decline attributed to fewer Canadian tourists. This reduction is affecting major attractions and businesses reliant on international visitors, who typically spend more than domestic tourists. Air Canada has raised fares to mitigate the loss in bookings, but the ongoing uncertainty surrounding US-Canada trade relations and a weaker Canadian dollar continue to challenge the airline's financial outlook, despite a smaller-than-expected quarterly loss boosting its stock price temporarily.

Tariffs Us Canada Relations President Trump Air Canada Tourism Industry Impact New York City Tourism 2025 Profit Forecast Canadian Travelers

Story submitted by Fairstory

RATING

6.0

Moderately Fair

Read with skepticism

The article provides a timely and relevant examination of Air Canada's financial outlook and the impact of US-Canada relations on tourism. It effectively communicates complex economic information and engages with topics of public interest. However, the lack of balance and transparency in sourcing and methodology weakens its credibility. While the article captures attention and addresses significant issues, its impact is limited by the absence of diverse perspectives and detailed verification of political claims. Overall, the article offers valuable insights but would benefit from more comprehensive sourcing and a balanced presentation of viewpoints.

Accuracy

The article provides detailed information about Air Canada's profit forecast cut, booking declines, and the impact on New York City's tourism. These claims are largely supported by industry reports and Air Canada's official statements. However, the political context involving President Trump's policies and rhetoric requires further verification, as these are presented without direct quotes or sources. The financial figures and booking statistics align with available data, but the claims about political tensions and their direct impact on consumer behavior need more substantiation.

Balance

The article primarily focuses on the negative impact of US-Canada political tensions on Air Canada and New York City's tourism industry. It presents a one-sided view, emphasizing the adverse effects without exploring potential mitigating factors or alternative perspectives, such as responses from US tourism boards or Canadian consumer behavior insights. This lack of balance could lead readers to perceive the situation as more dire than it might be, without considering possible countermeasures or positive developments.

Clarity

The article is generally well-structured and easy to follow, with a logical flow of information from Air Canada's financial outlook to the broader impact on tourism. The language is clear and concise, making complex financial data accessible to a general audience. However, the inclusion of speculative political claims without sufficient context may confuse readers about the direct causality between political events and economic outcomes.

Source quality

The article lacks explicit attribution to specific sources, relying on general references to Air Canada's statements and industry data. While the financial and booking data are likely derived from credible reports, the absence of direct quotes or named sources for political claims and tourism impacts weakens the article's credibility. The reliance on unnamed sources or broad statements without clear attribution limits the reader's ability to assess the reliability of the information presented.

Transparency

The article does not clearly disclose its sources or the methodology behind the claims, particularly regarding the political context and tourism impact. There is little explanation of how the figures were obtained or what specific data was used. The lack of transparency in sourcing and methodology makes it difficult for readers to understand the basis of the claims, potentially affecting the perceived impartiality and reliability of the article.