Recent data indicates that the United States is experiencing a sharp decline in international visitors in 2025. While the fall is seen from visitors flying in from many countries, including the U.K., it is particularly pronounced along the land border with Canada. Conversely, Canada’s tourism industry has been flourishing, with many visitors opting for the country as an alternative to the U.S.

According to a study by the World Travel and Tourism Council (WTTC), the U.S. is the only country among 184 to project a decline in foreign visitor spending for 2025. This is in part likely due to several news stories reported worldwide of tourists being detained and deported after the new stricter immigration and travel policies. Potential visitors have cited a feeling of unease about visiting the US, even if they have all the correct paperwork. U.K. residents make up the largest number of overseas visitors to the U.S., with 3.9 million a year. In April 2025, The Guardian reported that the number of U.K. residents visiting the U.S. decreased by 14.3% in March 2025 compared to the same month in 2024.

However, the WTTC projects Canada’s travel and tourism sector will reach record levels this year, with a strong domestic market and a steady recovery in international travelers. Canadian travel overseas outside the U.S. has also seen an increase as well as domestic travel. August 2025 is projected to see the highest number of Europe to Canada flights on record equating to over 1.2 million seats. Flights between Europe and Canada are up 5% on August 2024 levels, while flights are also up 14% compared to pre-pandemic (August 2019) according to aviation analytics firm Cirium.

Canada’s flag carrier, Air Canada, has spurred this market expansion, adding the highest number of Europe-Canada summer flights year-on-year. The airline has added an additional 112 flights from Europe to Canada this August versus the same period in 2024 – equating to over 34,500 extra one-way seats during the month. Air Canada’s peak August schedule between Europe and Canada is 8% larger than August 2024. As well as increasing frequencies to established destinations, the airline has also introduced five new transatlantic routes:

  • Edinburgh to Montréal Trudeau
  • London Heathrow to Ottawa
  • Naples to Montréal Trudeau
  • Prague to Toronto-Pearson
  • Porto to Montréal Trudeau

“Canada is seeing strong interest from travellers in our target overseas markets, especially from the UK. Guests from Europe and the UK are particularly attracted to Canada’s awe-inspiring landscapes and culturally rich experiences, as well as the country’s reputation of being safe and welcoming,” said Meaghan Ferrigno, Senior Vice President, CFO and Chief Data & Analytics Officer, Destination Canada.

The United Kingdom has been Air Canada’s top-performing European market this year, with travel interest from the U.K. to Canada remaining above historical levels. This is reflected in the 7% increase in air arrivals from the U.K. to Canada in June 2025 compared to the same time last year.

Air Canada has also been investing in the customer experience with a refurbishment of its Maple Leaf lounge at London Heathrow airport including updated lighting, new artwork by Nicolas Ruel, and increased seating capacity. The lounge features a staffed bar for cocktails and drinks as well as showers. Travelers can also use the Star Alliance arrival lounge when arriving at Heathrow airport on Air Canada. The changes are part of a broader plan to improve the airline’s lounges by adding nine new lounges, renovating eight, and increasing lounge capacity by 43 per cent.

The airline are also investing in new aircraft with 18 Boeing 787-10 aircraft on order with an option for 12 more. The first deliveries are expected in early 2026. With a focus on more premium seats, the aircraft will feature a new layout, which is likely to include a business plus product from the layouts shared at its investor day.



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