Is Canada's domestic market still stable after US demand softens? 2H2025 could be pivotal

A by-product of the drop in Canada-US transborder demand, after shifts in US trade policy, was the decision by Canadian airlines to redeploy some capacity back into the domestic market.

A lingering question from the reallocation of capacity is whether there's a danger of a supply-demand imbalance occurring in Canada's domestic market.

For now, Canadian airlines seem optimistic that a rational marketplace will ensue, as they navigate the northern summer high season.