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After tough market conditions ensue, Air Canada sees bottoming out of weak transborder demand

Premium Analysis

It has been close to a year since Canadian carriers had to quickly pivot sizeable amounts of US transborder capacity to other markets as dizzying changes to trade policies and intensifying geopolitical positions rapidly dampened demand.

A complete recovery from demand erosion is far from certain, but Canada's largest airline, Air Canada, believes a bottoming of that demand erosion is starting to occur.

Arguably, even as US transborder demand in Canada lags behind historical levels, the market remains strategic for Canadian carriers, despite geopolitical uncertainty becoming the new normal for airlines during the last year.

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