Air Canada is expanding its Mexico network for summer 2026, increasing seat capacity by 18% year on year, with new routes and increased frequencies to Mexican destinations. The airline will launch year-round service from Montreal to Guadalajara and boost flights to Cancún, Monterrey, Mexico City, and Puerto Vallarta, aiming for about 1,700 seats daily during peak season. This move is part of Canada's broader strategy to diversify trade and strengthen economic ties with Mexico, supported by government officials emphasizing trade benefits. Meanwhile, Canadian carriers are reducing US transborder capacity, with WestJet cutting 11 US routes and Air Transat suspending all US flights from May 2026, reflecting a shift in focus driven by geopolitical tensions, demand shifts, and economic considerations. Despite reductions in US routes, Canada plans to increase US-bound seats to 9.57 million for summer 2026, but the overall trend indicates a significant realignment of capacity toward Mexico and Latin America, with capacity to the US decreasing by about 6% year over year in the first half of 2026. This strategic reallocation highlights changing travel patterns, economic priorities, and political influences affecting Canadian airline route planning.