WestJet posts impressive performance

WestJet, Canada’s second largest airline, has posted impressive traffic and profit figures, suggesting that the Canadian leisurely air travel industry remains strong and that WestJet is fast becoming the most prominent player in this field, as it begins to eclipse its main rival, Air Canada. The airline’s first quarter profit increased by an impressive 76 percent, compared to figures from the same period in 2007, signalling that WestJet has successfully weathered the storm caused by high oil prices. This does not, however, mean that the airline known for its discount prices and strong presence in Western Canada is out of the woods, due to the constant strains caused by the high cost of oil. The carrier’s figures show that it spent 29 percent more on fuel than during the first three months of 2007 and that oil related costs now form nearly a third of the company’s total expenditures. As such, it is almost certain that WestJet will have to raise its fuel surcharge, in order to remain profitable.

Sean Durfy, WestJet’s CEO, suggested that although airfare and fuel surcharge increases may be inevitable, the discount carrier will continue to place a strong emphasis on offering competitive ticket prices and reduced fares on the most popular routes. WestJet’s total revenue stood at $52.5 million during the first three months of the year, compared to $29.9 million in 2007.

WestJet, a discount airline, tends to either match Air Canada’s prices, or offer lower airfares. In exchange, passengers receive the same level of service-or higher-than what they could expect from Air Canada. All passengers are offered complimentary non-alcoholic drinks on WestJet routes, along with light snacks, usually consisting of cookies or nut mix.

www.westjet.com