The United States’ relationship with its neighbors to the north has been deteriorating for months, due to President Trump and both his trade war and threats of making Canada the 51st state. Now aviation data firm OAG reveals bookings for flights from Canada to the US have plummeted. Veuer’s Tony Spitz has the details.
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00:00The United States' relationship with its neighbors to the north has been deteriorating for months due
00:04to President Trump and both his trade war and threats of making Canada the 51st state.
00:09Now aviation data firm OAG reports that bookings for flights from Canada to the US have plummeted.
00:15According to the report, US-bound bookings from Canada between April to September have dropped
00:2070% over the same period last year. What's more, airlines that service those routes are also
00:26lowering their capacity, an indicator that they foresee this lower demand perpetuating.
00:30So what does this mean for the US tourism industry? Well, according to travel news site
00:34The Points Guy, if the United States loses just 10% of Canadian tourists, American businesses will
00:40also lose $2.1 billion in revenue. Not to mention the airlines that also rely on those travel routes
00:46will also suffer. Delta and United, for instance, have already reported 30 to 40% losses over the
00:52same period last year. Economists believe that economic uncertainty and Trump's trade
00:56war are to blame, casting a shadow on the financial future security of Americans,
01:01meaning it's unlikely that many will book a trip six months from now. If they are uncertain,
01:05their financial situation will be the same at that time.