Air Canada takes aim at rival with US flights from Toronto’s downtown airport

Air Canada is doubling in size at Toronto’s convenient downtown Billy Bishop Toronto City Airport (YTZ) with four new U.S. routes.

The expansion begins March 29, 2026, with the Star Alliance carrier’s first U.S. nonstop from YTZ to New York’s LaGuardia Airport (LGA) on a De Havilland Canada Dash 8-400. The route is possible thanks to the opening of a new U.S. Customs and Border Protection preclearance facility at the Toronto airport, allowing U.S.-bound customers to clear immigration and customs in Canada prior to boarding their flights.

Then, in June and July, Air Canada will connect YTZ to Boston Logan International Airport (BOS), Chicago’s O’Hare International Airport (ORD) and Dulles International Airport (IAD) near Washington, D.C.

The airline will also add flights from YTZ to Montreal-Trudeau International Airport (YUL) and Ottawa International Airport (YOW) in January 2026.

“We’ve got a big, bold expansion” at YTZ, Mark Galardo, chief commercial officer of Air Canada, told TPG in an interview Thursday. “We’re literally doubling our capacity inside that airport.”

Schedule data from aviation analytics firm Cirum confirmed this: Air Canada offers 12 daily departures from YTZ today that will grow to 25 daily departures under the expansion unveiled Thursday.

Porter Airlines, the largest carrier at YTZ, offers an average of 41 daily departures from the airport, Cirium schedules show.

YTZ is located on an island minutes from downtown Toronto. Travelers can reach the mainland via either an underground pedestrian tunnel or a ferry that travels the 400 feet between a downtown pier and the airport in about 90 seconds.

US expansion despite uncertainty

The new nonstop flights to the U.S. from YTZ come at a time of uncertainty in the market. Annexation and trade comments by the Trump administration this past spring angered many Canadians and prompted some travelers to look elsewhere for upcoming trips.

The number of Canadians entering the U.S. by air fell nearly 12% during the first seven months of the year compared to the same period in 2024, data from the U.S. International Trade Administration shows. Overall, foreign arrivals by air to the U.S. were down just 3%.

“While there is a bit of a slowdown in Canadian origin travel to the U.S., primarily for leisure purposes, there has been no notable slowdown in business travel on the Canada-U.S. sector, and there’s been no slowdown in Americans coming to Canada,” Galardo said when asked about the market dynamics. “The Canada-U.S. corridor is still, for all intents and purposes, a pretty robust corridor.”

That, coupled with the fact that Air Canada has been planning the new U.S. flights for some time and has a large, loyal customer base in Toronto, gives the carrier confidence in the new YTZ flights that will rely on local — rather than connecting — travelers, Galardo added.

Air Canada is in the process of adding 10 to 15 new U.S. airports to its map to support its brisk “sixth-freedom” business. Sixth-freedom travel refers to travelers who originate in one country, change planes in a second and arrive in a third. For Air Canada, that means connections over its hubs at YUL, Toronto Pearson Airport (YYZ) and Vancouver International Airport (YVR) in British Columbia. An example of such an itinerary would be a passenger flying from St. Louis Lambert International Airport (STL) to Adolfo Suárez Madrid-Barajas Airport (MAD) via YYZ or YUL.

In September, Air Canada announced a return to San Antonio International Airport (SAT) and new routes to Cleveland Hopkins International Airport (CLE) and John Glenn Columbus International Airport (CMH) in Ohio.

Even after doubling in size at YTZ, Air Canada may not be finished growing there. Flights to Ronald Reagan Washington National Airport (DCA) and Philadelphia International Airport (PHL) — both airports it already serves — could come in the future if the current expansion goes well, Galardo said.

When asked about the airline’s choice of IAD instead of DCA, which is just across the Potomac River from D.C., Galardo said it was in order to connect to partner United Airlines’ large hub at IAD.

The new preclearance facility at YTZ — necessary for Air Canada’s new LGA flight (and a potential DCA flight) — is scheduled to open by the end of the first quarter of 2026 or early in the second quarter.

Competition with Canada’s favorite spokescritter

Air Canada’s new flights go head-to-head with YTZ’s home airline, Porter. The only route not served by Porter, known for its raccoon spokescritter, is LGA — though Porter flies to LGA from Toronto’s bigger YYZ airport.

From YTZ, Porter serves the New York area via Newark Liberty International Airport (EWR), which — unlike LGA — has a customs and immigration facility for international flights.

“Competition is a sign of a healthy, dynamic market,” Galardo said when asked about Porter. “There is a strong segment of brand-loyal Air Canada flyers that want Air Canada services at the downtown airport and that’s who we’re targeting.”

Indeed, the addition of preclearance facilities at YTZ opens up LGA and numerous other potential U.S. routes that Porter could now choose to serve from the downtown airfield.

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Air Canada will match Porter’s onboard offering of free snacks and drinks, including wine and beer, for all travelers on flights from YTZ. The carrier also offers all eligible travelers, including certain elite Air Canada Aeroplan loyalty members and those with Star Alliance Gold benefits, access to the Aspire Air Canada Cafe lounge at YTZ.

The carrier also highlights the fact that it is the only airline offering free inflight Wi-Fi from the airport. Porter does not currently offer Wi-Fi on its 8-400s that fly from YTZ.

“YTZ remains a focal point of Porter’s regional network, currently with 15 nonstop routes,” a Porter spokesperson said in an email. “As we build a highly-integrated network that stretches across North America, we’ll continue to consider opportunities for adding flights at Billy Bishop. Porter’s ongoing growth and distinct service standards are clearly disrupting the competition to the great benefit of travelers.”

Porter, for its part, is implementing a new partnership with American Airlines that many suspect could see it add new nonstops to the U.S. airline’s hubs — like PHL — from YTZ.

Details of Air Canada’s new Toronto routes

Air Canada is focused at YTZ, for now, on the expansion it unveiled Thursday, Galardo said. He deferred any specific questions on growth and aircraft — only turboprops like the 8-400 are allowed at YTZ — to a future date.

“There’s always a list of things to do,” he said.

In the meantime, below are the details of Air Canada’s new U.S. nonstops from YTZ:

• YTZ-LGA: four daily flights from March 29, 2026
• YTZ-ORD: two daily flights from June 1, 2026
• YTZ-IAD: one daily flight from June 1, 2026
• YTZ-BOS: three daily flights from July 1, 2026

All four routes will be flown in collaboration with United. Air Canada and United have a joint venture partnership that covers all flights between Canada and the U.S.

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