Canadian Carriers Cut U.S. Capacity 25% as Healthy Margins Keep Growth Plans Alive

Q: Is WestJet's new alliance with a U.S. airline giant a move to weather worsening diplomatic relations?

No. The available evidence shows WestJet is deepening ties with Delta Air Lines, but not explicitly as a defensive response to worsening U.S.-Canada relations. What is clear is that WestJet’s U.S. business remains profitable even after a 25% capacity cut. CEO Alexis von Hoensbroech said the U.S. market is still “healthy” and delivers “good margin,” suggesting the airline still sees the United States as an attractive market despite weaker cross-border demand. Porter has voiced a similar view. The stronger Delta link looks more like a long-term commercial strategy than a diplomatic hedge. Delta already owns 12.7% of WestJet, the two airlines have had a codeshare partnership since 2011, and WestJet recently added former Delta president Glen Hauenstein to its board. That points to deeper strategic integration around network reach, connectivity and growth, not a stated effort to offset political strain. The broader backdrop does matter. Cross-border travel has weakened sharply, with Statistics Canada reporting a 22% drop in Canadian trips to the U.S. in early 2026, and trade frictions have added uncertainty. But none of the cited reporting says WestJet’s Delta alignment was launched because of those tensions. So the best reading is that WestJet is reinforcing a profitable U.S. strategy while demand is softer, rather than using a new alliance specifically to weather diplomatic deterioration.

2 articles · Updated · Skift Travel News · Jun 11

WestJet and Porter said the U.S. remains a lucrative market even after political tensions forced Canadian carriers to trim U.S. capacity by 25%.
Alexis von Hoensbroech said WestJet still sees solid margins on U.S. routes, suggesting profitability has held up despite a steep drop in cross-border demand.
The comments point to selective growth opportunities in the U.S. for Canadian airlines, even as one of North America's biggest travel corridors continues to contract.

Sources

Skift Travel News2d ago

Canadian Carriers See U.S. Growth, Healthy Margins Despite 25% Capacity Cut from Political Tensions

Facebook2d ago

For the second consecutive month, more Canadians visited the U.S. than last year—a possible sign that one of the most successful travel boycotts is finally winding down. Read more: https://www.forbes.com/sites/suzannerowankelleher/2026/06/11/canada ...

Why is the politically tense U.S. market a profitable haven for Canadian airlines amid a global downturn?

Is WestJet's new alliance with a U.S. airline giant a move to weather worsening diplomatic relations?

Canadian Carriers Cut U.S. Capacity 25% as Healthy Margins Keep Growth Plans Alive

Summary

Sources

Insights

Related Stories

Sources

Related Stories