This holiday season is proving to be an incredibly active one for Canadian airlines, as they ramp up their operations to meet the increasing demand for travel. Recently, major airlines have unveiled a series of new routes, positioning themselves strongly for a busy travel period.
According to the latest data from Statistics Canada, Canadian Level I airlines recorded a significant uptick in air travel. In September 2025, they transported 7.2 million passengers through scheduled and charter services—a 2.3% increase from the same month in the previous year. Notably, this is the first instance of a year-over-year increase since January 2025.
Travelers have also been flying further, as the total passenger-kilometres soared by 3.3%, reaching 20.6 billion. Airlines have responded by increasing capacity, with available seat-kilometres rising by 3.9% to 25.0 billion. Despite these increases, the passenger load factor—a key indicator of flights’ efficiency—hovered at 82.4%, just below the 82.9% of the previous year.
Challenges in US Travel
While domestic travel is thriving, the same cannot be said for transborder flights to and from the United States. These flights comprised merely 9.8% of total itinerant movements at major and select smaller airports in Canada in September 2025, a decrease from 10.6% in 2024.
Canada’s leading airports have reported noticeable declines in US-bound movements: Toronto Pearson (YYZ) saw a decline of 2.3%, Vancouver International (YVR) experienced a 2.9% drop, Montreal-Pierre Elliott Trudeau International (YUL) was down by 8.8%, and Calgary International (YYC) fell by 7.6%.
Passenger numbers on scheduled transborder flights plummeted by 15.2% compared to September 2024—marking the eighth consecutive month of declines. Capacity on these routes also dropped significantly by 12.6%, while the passenger load factor decreased from 79.9% to 75%.
What Lies Ahead for the Aviation Sector
The trends emerging from these statistics indicate a mixed bag for the aviation industry. On the one hand, increased capacity and a rise in domestic travel suggest a sector gearing up for a robust holiday season. On the other hand, dwindling US-bound traffic raises concerns about the sustainability of international routes.
As airlines continue to expand their networks, the focus will be on addressing the challenges faced in the transborder market. Stakeholders may look to optimize routes and enhance connectivity to regain lost momentum in US travel, especially as consumer confidence in air travel continues to evolve.
