‘Tariffic’ Deals, Capacity Cuts, Marketing Pauses: Canadian Airlines React to U.S. Trade War   

The fallout from President Donald Trump’s announcement of a 25% tariff on Canadian goods has been swift, though as of Thursday afternoon, there was a temporary reprieve.

While the tariffs have targeted trade, they are shaping how Canadians feel about spending their money. Some Canadians have started canceling vacations to the U.S. and boycotting U.S.-made products. 

Canadian airlines are trying to figure out how to respond. 

Porter Airlines, Canada’s third largest airline behind Air Canada and WestJet, told Skift it has maintained demand for U.S. routes throughout February, but anticipates that overall bookings may be lower than initially expected in 2025 due to the rising tensions. The carrier said it has had to lower fares to keep bookings steady. 

“Canadian consumers are still willing to travel to the United States, if the price is right,” said Porter Airlines President Kevin Jackson.

One immediate shift has been marketing. Porter has temporarily halted all marketing efforts promoting travel to the U.S. This follows feedback from Canadian consumers that advertising U.S.-bound trips during the current political climate would be “tone-deaf.”

“Canadian consumers have made it clear to us that they don't believe that we should be promoting travel to the United States,” Jackson said. 

But Porter isn’t making any drastic changes — yet. Jackson added that it’s too early to predict what the road ahead looks like and that most consumers are in a “wait-and-see” mode, rather than making definitive shifts in travel behavior. 

“This is a very fluid situation, and I don't think anyone should try to predict exactly what's going to happen right now,” Jackson said. 

‘Tariffic Deals’

For Canadian ultra low-cost carrier Flair Airlines,, tariffs have become fodder for a marketing strategy to boost sales to non-U.S. destinations.

Flair  launched a two-day flash sale — “Tariffic Flight Deals” — early this week, offering 25% off domestic flights, and routes between Canada, Mexico, and the Caribbean. 

“Nothing trumps this deal,” the airline captioned in its social media post. 

Flair said the campaign aligns with its goal of providing affordable travel while also responding to shifting consumer sentiment. 

“As we continue to monitor industry changes, including the broader impacts of tariffs, we remain flexible and responsive to market shifts to meet the needs of those we serve,” Flair said in a statement to Skift. 

The promotion comes as Flair is making capacity cuts to some U.S. destinations. Flair's flights from Calgary and Edmonton to Las Vegas will end April 7. Some seasonal services to Phoenix, Palm Springs and Fort Lauderdale are also ending earlier than previously scheduled. Flair did not confirm to Skift if the changes were a direct response to the geopolitical fallout.

Air Canada Rethinks U.S. Capacity

Air Canada executive vice president of revenue and network planning Mark Galardo said during a call with analysts in February that the carrier plans to reduce its capacity exposure in certain U.S. leisure markets starting in March. 

Galardo said Air Canada was “acting proactively” in markets like Florida, Las Vegas and Arizona. 

Despite the economic uncertainty caused by the tariffs, Galardo said Air Canada had seen “encouraging booking trends” for the second and third quarters. 

“There might be some opportunity in domestic, and we see some opportunity in some leisure markets as well,” he said during the call. “So if we do see some softness on the U.S. side because we're not seeing it close in just yet, we can offset it with some changes.”