Travel to the U.S. slides — Air Canada bets on 7 new routes to Europe and Asia

As demand for U.S. travel keeps lagging, Air Canada is wagering that overseas connections are where the growth is.

What is Air Canada actually adding?

The airline plans new service to several cities for next summer, including Guangzhou, China, Oslo, Norway and Dubrovnik, Croatia, among others, and expects to operate more than 125 international routes to over 85 destinations, excluding the U.S., by next summer — an 8% jump in overseas flight volume compared with summer 2026.

The build-out leans on new aircraft that have been slow to arrive. The first of an expected 30 Airbus A321XLR long-range single-aisle jets landed in April, with the bulk arriving in 2027 and the last delivery due in 2029. Air Canada also trimmed an order for Boeing 787-10 wide-bodies to 14 from 18 in fall 2025 amid production delays; the first is due to touch down later this year and enter service in 2027.

Why now — the U.S. travel slump behind the pivot

Canadians pulled back sharply on U.S. travel starting in early 2025, as political tensions and tariff threats reshaped vacation plans. Leisure trips south of the border fell 21.5% that year, while total travel spending dropped $3.3 billion to $18.8 billion.

The decline stretched to 15 consecutive months of year-over-year drops before easing this spring. By June and July 2026, Canadian-resident trips to the U.S. were actually up year-over-year — but largely because they were being measured against depressed 2025 numbers. June trips remained 24.6% below June 2024 levels, while July return flights by air were down 26.8% from July 2024.

Add in rising fuel costs tied to the ongoing Iran war, plus years of closed Russian airspace, which remains a major obstacle for direct flights between North America and Asia. Together, they make Europe and Asia look like the more reliable growth markets.

What this means for Canadian travellers

For travellers, the shift could mean more nonstop options to Europe and Asia over the next couple of years, particularly through Air Canada’s hubs in Toronto, Montreal and Vancouver, which the airline is positioning as layover points for connecting traffic between the Americas, Europe and Asia.

However, none of the new routes restore U.S. capacity — so travellers whose budgets already shifted toward domestic trips or overseas vacations may see the most new choice.

What to do if you’re planning a trip

If one of the new destinations fits your plans, book early. Fares on newly launched long-haul routes are often at their most competitive in the months right after they’re announced, before demand catches up to capacity, and these routes won’t fly until next summer. If you’re deciding between a U.S. trip and one of the newly served cities, don’t assume America is still the cheaper default — fare and hotel competition hasn’t increased there the way it has overseas, so it’s worth comparing both before you book.

None of this makes a U.S. trip more expensive or a European one automatically cheaper. But the numbers point in opposite directions — Canadians still cautious about U.S. travel, and Air Canada betting its growth is overseas. For anyone planning next year’s trip, that’s worth factoring in before you book.