MONTREAL (Reuters)

Air Canada is seeing a “low teens” percentage decline in bookings over the next six months for trips across the U.S. border amid trade tensions and a weaker Canadian dollar, the airline’s CEO said on Friday.

However, shares in Canada’s biggest airline jumped more than 10% in morning trade after it reported a smaller than expected quarterly loss, despite lowering its annual adjusted core profit forecast on Thursday.

Montreal-based Air Canada previously said its decline in U.S.-bound bookings over the next six months mirrored an industry-wide drop of roughly 10%.

“Uncertainty was for sure the main theme during the first quarter,” CEO Mike Rousseau told analysts.

“We are experiencing booking declines on the trans-border market in the low teens on average over the next six months.”

Canadians are boycotting U.S.-made goods and cancelling trips south of the border after President Donald Trump’s tariffs and his suggestions that Canada should be annexed by the United States.

Overall, booking trends remain stable, given Air Canada’s diverse network and exposure to international destinations, where demand remains strong. Results were solid in Mexico and the Caribbean as Canadians look for alternative destinations, the carrier said.

North American airlines have been trimming flight schedules amid weakening U.S. domestic bookings, scrapping financial forecasts and tightening cost controls — including on rising labor expenses — to safeguard margins.

Air Canada on Thursday reported an adjusted quarterly loss per share of C$0.45, ahead of analysts’ average estimate of a loss of C$0.54, according to data compiled by LSEG.

The carrier also said it would purchase and cancel up to C$500 million in shares by the end of next month.

Rousseau said he did not expect any market changes with news on Friday that Delta Air Lines and Korean Air Lines are acquiring an aggregate 25% stake in smaller, privately-held Canadian rival WestJet Airlines.

“Delta does have a relationship with WestJet and has had one for quite some time, and we all know Delta has a strategy of putting minority interests in airlines around the world.”