Canadian airlines are reducing flights to the US for Q1 2026. Data shows a 10% drop in seats compared to last year. WestJet cut capacity by 19%, Air Canada by 7%, and Flair by 58%. This represents about 450,000 fewer passengers. Carriers are shifting that capacity to Mexico, Costa Rica, and Europe. Management cited the need to derisk and move resources to where demand is stronger. The US Travel Association predicts a $5.7 billion hit to the industry from declining Canadian and Mexican tourism. Las Vegas, LA, and Atlanta are seeing the biggest cuts.