Air Canada says low loonie not deterring Canadians from travelling to U.S. destinations
The relatively low value of the loonie isn’t deterring Canadians from travelling to the United States, especially to winter vacation spots in Florida, Arizona and Hawaii, Air Canada said Friday.
Transborder revenues increased 7.2 per cent last year to $2.89 billion, a sign that Canadians are increas- ingly heading south, said Ben Smith, of passenger services.
“The demand is holding up quite nicely despite the lower Canadian dollar,” Smith told analysts during a discussion of its fourth-quarter and 2016 results. That kind of demand wasn’t seen in the past when the loonie was low, he added.
In his response, Smith avoided an analyst’s question about whether heated political rhetoric in the U.S. has increased bookings to Canada.
Over the past year, the Canadian dollar has traded between the 72cent and 79-cent US mark. Transborder traffic at Air Canada between the U.S. and Canada grew 13 per cent in that time.
Air Canada’s full-year revenue increased to $14.68 billion from $13.87 billion in 2015.