The United States is considering re-evaluating its Pre-Clearance service at Canadian airports due to a notable drop in the number of travellers. This has been a hallmark of cross-border aviation for half a century, which permits travellers to complete US customs and immigration at ports of departure in Canada. There is a growing worry concerning the economic feasibility of the program, given the slowdown in transboundary travel, particularly in 2025.

At the Global Business Forum in Banff, Alberta, US Ambassador to Canada Pete Hoekstra raised the possibility of ending the Preclearance program, citing economic reasons. He noted that the US government is responsible for funding the program, and with decreasing passenger traffic, the costs may no longer be justifiable.

Pre-Clearance Service at Canadian Airports

The Preclearance program allows travellers to clear US immigration and customs at select Canadian airports, reducing wait times and streamlining the entry process upon arrival in the US. The service has been available in Canada since 1952, initially starting in Vancouver and later expanding to eight major airports including Toronto Pearson (YYZ), Vancouver (YVR), Montreal (YUL), and Calgary (YYC). It has made travelling from Canada to the US more convenient, especially for connecting passengers and those travelling for business or leisure.

As reported by the US Customs and Border Protection (CBP), the Preclearance program has been a major draw for passengers connecting through Canadian airports, offering a smoother entry into the US. However, recent data from CBP reveals a 25 percent drop in air travel from Canada to the US during August 2025, further highlighting the slumping demand.

Declining Passenger Numbers Raise Concerns

The sharp decline in travel has put pressure on the Preclearance service, which remains funded entirely by the US government. According to Hoekstra, the question of whether the program still makes economic sense for the US is becoming harder to answer. He pointed out that maintaining Preclearance services comes at a significant financial cost, and with fewer travellers, the numbers simply do not add up.

In addition to the decline in overall travel, Air Canada and other Canadian airlines have already begun scaling back their operations to the US. In 2025, Air Canada suspended eight routes to US cities and deployed smaller aircraft on several other routes due to lower demand. Similarly, WestJet reduced its US routes in favour of more profitable destinations in Europe and the Caribbean.

The Potential Impact on Canadian Airlines

If the Preclearance program is indeed phased out, Canadian airlines could face significant setbacks. The ability to bypass US immigration procedures in Canada has been a major advantage for airlines like Air Canada, as it allowed them to offer a more seamless experience for US-bound travellers. Without Preclearance, passengers would have to clear US immigration at their arrival airport in the US, leading to longer wait times and potentially higher costs for Canadian carriers.

This change could lead to increased operational costs for airlines, which may be passed on to passengers in the form of higher fares. Furthermore, Canadian airports would lose a competitive edge in attracting connecting passengers, as travellers may choose airports with US Preclearance services to avoid long lines and delays upon arrival in the US.

What Does This Mean for US-Canada Travel?

While the Preclearance program has been an important element of US-Canada travel, the decline in air traffic suggests that both governments and airlines need to re-evaluate their approach. The loss of the Preclearance service would be a setback for Canadian airlines and would likely reduce convenience for travellers. However, the long-term impact on the broader US-Canada travel market will depend on how both governments and airlines adjust to this change.

In addition, the US may need to explore other solutions to maintain its competitive edge in the travel sector, particularly for passengers flying out of Canadian airports. For now, discussions about ending the program remain preliminary, with US officials weighing the financial aspects of continuing Preclearance versus the benefits it provides to passengers and airlines.

What’s Next for US-Canada Air Travel?

The potential end of the Preclearance program at Canadian airports is a topic that could have wide-reaching consequences for US-Canada air travel. While US airlines and airports could experience less disruption from such a change, Canadian airlines would feel the impact more acutely, as it would significantly affect passenger flows and cost structures. For travellers, the loss of Preclearance could mean longer waits at US airports, diminishing the benefits of choosing Canadian airports for international flights.

No decision may have been formulated, but US and Canadian officials will have to think of ways to alter their travel approaches from the status quo. Whether or not Pre-Clearance remains in its current form may very well depend on the evolution of the airline industry and what passengers will want in the next few years.

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