The potential loss of pre-clearance services at Canadian airports could lead to increased costs for airlines, airports, and travelers, according to an aviation expert. Pete Hoekstra, the U.S. ambassador to Canada, expressed concerns on Thursday about declining usage of pre-clearance facilities as travel from Canada to the U.S. decreases this year.

During the Global Business Forum in Banff, Alberta, Hoekstra suggested that the U.S. might need to reevaluate the pre-clearance program. "We're not sure we can make the numbers work anymore... pre-clearance is something that is done at the expense of the U.S. government. We paid for it," he stated. He emphasized that if the financial viability of the program is in question, it may require a reassessment.

Pre-clearance allows travelers to complete U.S. customs procedures in Canada before boarding their flights, which helps them avoid long wait times at busy U.S. airports. The program was first introduced in Toronto in 1952 to encourage U.S. travel among Canadians. Currently, pre-clearance is available at several Canadian airports, including Calgary, Edmonton, Toronto, Vancouver, Montreal, Halifax, Winnipeg, and Ottawa.

U.S. Customs and Border Protection operates 15 pre-clearance locations across six countries, including Canada. In 2024, the program facilitated the processing of over 22 million travelers, accounting for nearly 16 percent of all commercial air passengers entering the U.S.

Despite a decline in Canadian travel to the U.S. this year, major airlines like Air Canada and WestJet continue to promote flights to the U.S., highlighting the advantages of pre-clearance. John Gradek, an aviation management professor at McGill University, noted that pre-clearance is particularly beneficial for passengers traveling to congested U.S. airports.

"[Pre-clearance] for passengers arriving in congested airports in congested time frames is a winner," Gradek said. He pointed out that WestJet has seen significant traffic from California connecting through Calgary, and Air Canada has similar success with flights from Toronto, Vancouver, and Montreal.

WestJet spokesperson Jen Booth reaffirmed the importance of the U.S. market, stating, "As Canada continues to be the largest source of travelers to the United States, pre-clearance continues to be advantageous and an important element for the facilitation of cross-border travelers for both Canada and the United States."

While pre-clearance occupies valuable space in Canadian airports, the U.S. primarily covers the costs associated with staffing the service. Gradek acknowledged the challenge of quantifying the economic benefits of pre-clearance but emphasized its role in boosting tourism.

He stated, "In principle, there is value, and it doesn't take much to figure out what that value is. People are making trips to Vegas or L.A. or New York, and doing those trips because of the convenience of pre-clearance."

If pre-clearance is eliminated, larger airports in Toronto, Vancouver, and Montreal could face significant financial repercussions. However, smaller airports in cities like Edmonton, Halifax, and Winnipeg would also likely experience a notable impact, as fewer travelers may choose to visit the U.S.

While the removal of pre-clearance could free up space in Canadian airports for other uses, it may also lead to a decline in revenue from U.S. travel.