Delta Air Lines has experienced a notable decline in travel bookings from Canada during the first quarter and is now weighing potential reductions in flight capacity to the country, according to a senior company executive.

“In Canada, we’ve seen a significant drop-off in bookings. In Mexico, it’s a bit of a mixed bag—some markets are doing better, some worse,” said Delta President Glenn Hallenstein during a call with investment analysts on Wednesday.

“We’re navigating through those waters, and I believe Canada and Mexico are areas where we’ll likely look to reduce capacity as we move forward,” he added, without providing specific details.

Hallenstein’s comments came following the release of Delta’s latest quarterly financial results. The Atlanta-based airline remains profitable but has suspended its financial outlook for the remainder of the year, citing instability caused by U.S. President Donald Trump’s global tariffs and ongoing trade disputes.

Delta currently offers flights from a number of Canadian cities, including Montreal, Toronto, Vancouver, Quebec City and Halifax. It remains unclear which routes might be affected. These Canadian services connect with Delta’s major hubs in Atlanta, Minneapolis–St. Paul, and Seattle.

A Delta spokesperson did not respond immediately to requests for comment.

However, Canadian travellers have been increasingly avoiding cross-border trips—by air and land—since early 2025, after Trump threatened to annex Canada through “economic force” and turn it into the 51st state of the United States.

The U.S. President has also sparked outrage by imposing unilateral tariffs on several Canadian industries despite existing trade agreements, leading to job losses and business closures. In response, many Canadians have cancelled business trips and holidays to the U.S., opting for alternative destinations and airlines.

Delta CEO Ed Bastian acknowledged the financial impact and heightened uncertainty resulting from the tariff battles and increasingly strained U.S.-Canada relations.

Speaking to another industry analyst on the same call, Bastian remarked that all businesses must “do what they can to safeguard their future” during what he described as “a period of peak or potential peak uncertainty.”

“And Delta is doing just that,” he said, “whether through cutting capacity or identifying other methods to conserve cash and protect our profit margins.”

Delta is not the only airline reacting to shifting demand. According to aviation industry site Simple Flying, Canadian national carrier Air Canada is also scaling back its U.S.-bound services from Vancouver and other cities due to weakening demand from American passengers.