Chief commercial officer Mark Galardo said on an earnings call that there has been little increase in travel from Canada to normally popular U.S. destinations like Florida, Las Vegas and Arizona, so it is cutting flight capacity. (The Logic)

Talking point: Air Canada’s stock fell over 13 per cent on Tuesday afternoon after its quarterly net income fell short of analyst expectations. CEO Michael Rousseau said the airline’s turnaround plan includes redirecting resources to “high-demand markets” after an 11 per cent drop in revenue from U.S. travel, as Canadians book more trips to Europe, Japan and Australia. Many readers told The Logic in February they were considering cancelling upcoming U.S. travel plans in response to the country’s tariff policies and President Donald Trump’s comments about making Canada the 51st U.S. state. On Tuesday, Galardo said Air Canada’s Canadian rivals are also cutting U.S. routes in favour of domestic flights, and the airline is refocusing its “sun market” offerings on warm destinations like South America and Southeast Asia.