Canadian Airlines Shift Capacity to Latin America Amid US Demand Softening

Since the start of 2025, Canadian airlines have seen softening demand for leisure travel to the United States. This has largely been driven by shifting trade policy and economic uncertainty under the current US administration. In response, carriers have redirected capacity south into Latin America and the Caribbean, and even during the northern winter season, the expansion is set to continue.

According to IATA scheduling, the Northern Hemisphere winter season begins on October 26, and data show solid seat growth in these markets as airlines move away from traditional US sun destinations. All four major Canadian carriers are participating in the shift. Cirium data indicate that Air Canada, WestJet, Porter Airlines, and Air Transat together will add around 36% more seats to Latin America this winter while collectively cutting more than 1,500 flights to the US.

Major Cuts Hit US Routes as Canadian Airlines Shift Capacity

WestJet has made some of the highest cuts to its US network in recent months. As previously reported by Simple Flying, the airline has adjusted its schedule in recent months due to weaker demand, and those changes are continuing into winter. Compared to last winter season, it is operating about 13.3% fewer flights (roughly 1,050 services) and 16.3% fewer seats (around 209,000). Edmonton–Las Vegas has lost more than a third of its capacity, while Edmonton–Atlanta has lost around 61 flights, leaving only about 87 services this winter, with seat capacity reduced to over 13,600.

In addition, frequencies to Los Angeles, Phoenix, and Minneapolis have also been reduced. Winnipeg is another market seeing fewer flights. Winnipeg–Atlanta has fallen from 104 flights to 64, with seat capacity cut nearly in half. Winnipeg–Los Angeles has been suspended since June. Ottawa–Fort Myers, Regina–Orlando, and Vancouver–Santa Ana are also off the schedule.

Besides, Air Canada has also scaled back US services this winter and cut several secondary routes outright. Toronto–Jacksonville has been dropped, while Montreal has lost connections to Detroit and Minneapolis. Toronto–Indianapolis and Vancouver–Tampa have also been withdrawn. Overall, on other transborder services, the airline has lowered capacity by switching to smaller aircraft or reducing weekly frequencies.

New Routes, More Seats: Canadian Carriers Grow In The South

Canadian carriers have redirected much of the lost US capacity into Latin America and the Caribbean. Collectively, the four airlines are adding more than 4,000 flights to Latin America alone during winter. Earlier this year, in May, Air Canada announced the launch of 13 new routes and four entirely new destinations in the region, marking its most extensive seasonal schedule to date. The airline is offering 16% more seat capacity than last winter, with services spanning more than 80,000 weekly seats across 55 daily flights.

The new routes include services to Santiago, Pointe-à-Pitre, Fort-de-France, Nassau, Montego Bay, and Huatulco, while new destinations joining the airline’s network are Rio de Janeiro, Cartagena, Guatemala City, and Guadalajara. Notably, Air Canada is also seeing Latin America as an opportunity to expand its sixth freedom traffic. It reported a 12% year-over-year increase in revenues from these markets in the first quarter of 2025 and sees potential for further growth.

Among its new launches this winter is Toronto–Guadalajara, which Chief Commercial Officer Mark Galardo described earlier this year as well-suited for both local demand and international connections. He noted that the route is timed to connect into Air Canada’s wider global network, creating what the airline sees as “a decent proposition in the Sixth Freedom play between Europe and Mexico.” WestJet has also made a major push into the region. According to the airline, seat capacity to Latin America and the Caribbean will grow by about 6% this winter, with Costa Rica, the Dominican Republic, and Mexico seeing the most expansion.

The carrier is adding new destinations, including Guadalajara, Tepic, Havana, and Managua, alongside an extensive schedule of seasonal routes. Between November 2025 and March 2026, WestJet is scheduled to operate nearly 2,950 flights to Latin America and the Caribbean, with a large share focused on Cancun. The airline’s wider footprint in leisure markets follows its acquisition of Sunwing, which has given it a strong network position in holiday destinations.

Porter Will Enter Latin America With First Flights Beyond North America

In addition, Porter Airlines is making its first entry into Latin America and the Caribbean this winter. The airline will operate flights from Toronto Pearson, Ottawa, and Hamilton to Cancun, Puerto Vallarta, Nassau, Grand Cayman, and Liberia. Frequencies will range from weekly to daily, with Toronto–Cancun and Nassau set to run daily. In total, the carrier is adding 13 routes and 23 weekly departures from Toronto Pearson alone.

All flights will use Porter’s fleet of Embraer 195-E2 aircraft, configured with 132 seats and capable of operating within a 3,000-nautical-mile range. According to ch-aviation data, the carrier currently has 41 of the type in active service, with 30 more due for delivery and options for another 25. Furthermore, Porter Airlines will see competition on its Toronto-based routes from Air Canada, WestJet, Air Transat, and Flair, but it will have a unique position on several city pairs.

It will be the only airline flying from Ottawa to Grand Cayman and Liberia, and the sole operator from Hamilton to Puerto Vallarta and Nassau. Additionally, the airline’s joint venture partner, Air Transat, is also expanding its reach in Latin America. The carrier is launching new flights from Toronto and Montreal to Rio de Janeiro Galeao, as well as Montreal–Guadalajara.