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WestJet (TSX:WJA) is already getting into the European market by launching service next month to Dublin, Ireland, from St. John's, using its narrowbody Boeing 737 aircraft. It said demand is so strong the seasonal service will be extended by about three weeks to Oct. 25.
More than one million Ontarians fly out of Buffalo each year, which reduces the use of taxis, restaurants and hotels in Canada, added Saretsky, who noted that a more "progressive" government in British Columbia has eliminated the fuel tax on its international itineraries from Vancouver.
Walter Spracklin of RBC Capital Markets said the revenue trends are more positive than he initially thought, while costs aren't as bad as feared.
Meanwhile, WestJet said it was disappointed by the Ontario Liberal government's budget proposal to increase fuel taxes. The four cents per litre increase to be phased in over four years would cost the airline about $13 million. border.
say how many large planes could be added to its fleet, or which destinations could be served.
After a two per cent fare increase in February, WestJet has selectively increased fares in markets where demand is strong. Ancillary fees increased 28 per cent to $10.55 per passenger in the quarter, with the prospect for $80 million being collected for the full year. Charges including for changing and cancelling flights, pre reserving seats and buying food are designed to offset higher costs and the impact of the lower Canadian dollar.
The airline said the quarterly results include pre tax recoveries of value added taxes of $17.6 million associated with fuel costs and $2.5 million associated with airport costs from 2009 to 2013. Severe weather in January cost between $3 million and $6 million while the lower loonie had a $33 million negative impact.
"So no decision made yet but we're getting all the pieces in place to be able to make a good decision," president and CEO Gregg Saretsky said during a conference call to discuss its first quarter results, which saw a lower profit.
"We were very Louboutin Iriza Black
"So it's a much bigger issue than aviation, it really is a transportation issue and not very progressive."
However, the airline said it has no plans to introduce a currency surcharge as some charter operators have done.
The Calgary based airline said Tuesday the new service could be in place in 1 1/2 to three and a half years, if its board gives the green light. WestJet has been discussing the move with its pilots and also meeting with potential airplane lessors and manufacturers.
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While it assesses this new opportunity, WestJet said it is also upgrading its technology before deciding later this year whether to add a fee for first checked bags.
encouraged to hear the CEO speak to a much improved traffic and yield environment," he wrote in a report. "There was some focus on the call with regards to a wide body fleet, which may be met with some uncertainty by the market Silver Christian Louboutin Heels
Ross Marowits The Canadian Press Posted 4 months ago
WestJet Airlines says it could take its rivalry with Air Canada overseas by launching an international service using large widebody aircraft.
Saretsky said the decision by Porter Airlines to begin charging $25 for the first bag and $35 for a second bag checked on domestic travel is "indicative of the steps that airlines are needing to take to offset the headwinds that we're all facing."
It also announced the further roll out of its Encore regional service in Eastern Canada with the launch of twice daily service between Toronto and Quebec City as of next March using Bombardier Q400s.
At the same time, WestJet continues to cut costs, trimming $125 million this year, above its $100 million target and a year ahead of schedule. It hasn't announced any new target for additional efforts.
The airline's net profit fell two per cent to $89.3 million from $91.1 million a year earlier. It earned 69 cents per diluted share for the period ended March 31, one cent above last year. Adjusting for one time items, it earned 59 cents per share, four cents less than forecasted by analysts polled by Thomson Reuters. Revenues surpassed $1 billion, increasing 7.7 per cent from last year.
but nevertheless, we consider the quarter to be a net positive from a trend basis."
"All of that gives us great confidence that there is strong demand for a value based international product that WestJet is looking to pursue," Saretsky said before the airline's Christian Louboutin Sneakers For Women annual meeting in Toronto.
WestJet said it will purchase up to two million of its shares in the coming year, about 30 per cent less than the nearly 5.7 million shares it bought last year.
WestJet inching toward expanding international service with widebody aircraft
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