Canada's largest airlines hit hard after the country suspends flights to Mexico and the Caribbean to curb COVID-19

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  • The four largest Canadian airlines agreed to suspend flights to Mexican and Caribbean destinations in response to the country’s ongoing COVID-19 concerns.
  • Canadian Prime Minister Justin Trudeau announced that the temporary ban will be effective starting January 31 till April 30.
  • As Air Canada fell 7.9% and hit its lowest point since November, Air Transat announced that it will suspend all operations.
  • Visit Insider’s homepage for more stories.

Some of Canada’s largest airlines – Air Canada, WestJet Airlines, Air Transat, and Sunwing – have agreed to temporarily suspend flights to Mexican and Caribbean destinations in response to the country’s ongoing COVID-19 concerns. 

On January 29, Canadian Prime Minister Justin Trudeau announced the travel ban agreement will be effective starting January 31 till April 30.

Though complying with the country’s new guidelines, Canadian airlines have been hit hard in the pandemic. After Friday’s announcement, shares of Air Canada fell 7.9%, hitting the lowest point since November 13, before slightly rebounding, Bloomberg reported. WestJet already laid off up to 1,000 employees earlier this month and Air Transat announced on Friday that it will suspend all operations (not just flights to Mexico and the Carribbean). 

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Several aviation industry experts described Trudeau’s imposed travel restrictions as a “nail in the coffin” for the airlines and tourism industry. A prolonged suspension to “sun destinations,” or warmer vacation spots where people tend to visit during the winter season, can put multiple companies at risk of bankruptcies, The Canadian Press reported. 

“With the challenges we currently face with COVID-19, both here, at home, and abroad, we all agree that now is just not the time to be flying,” Trudeau said during a press event right outside his home in Ottawa. “By putting in place these tough measures now, we can look forward to a better time, when we can all plan those vacations.” 

According to Canada’s new international travel guidelines, visitors arriving in Canada must take a mandatory COVID-test at the airport. They also need to quarantine at a government-approved hotel for up to three days while they wait for test results. While people who tested positive are required to quarantine in designated government facilities, residents with negative results can complete their 2-week quarantine at home, CNN reported.

Despite being hit by the the restrictions, Canadian airlines insist on cooperating with the government to practice safety measures amid the global pandemic.

“Air Canada believes a collaborative approach with the Government of Canada involving all air carriers is the best means to respond to the COVID-19 pandemic, especially given concerns around the variants of COVID- 19 and travel during the spring break period,” Calin Rovinescu, president and CEO at Air Canada, said in a press release. “Through consultation we have established an approach that will allow us to achieve an orderly reduction in service to these destinations that minimizes the impact on our customers and will support important public health goals to manage COVID-19.”  

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