The airline says Flight AC84, scheduled to leave this afternoon, and Thursday's return Flight AC85 have been cancelled.
The Federal Aviation Administration also extended its ban on U.S. flights to the Israeli city.
The U.S. and European aviation agencies instituted the flight ban Tuesday in response to a rocket strike that landed close to Tel Aviv's Ben Gurion airport.
The FAA says it is working closely with the Israeli government to review new information they have provided and to determine whether safety concerns have been resolved.
Air Canada says it will continue to evaluate the situation.
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