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Air Canada and WestJet reduce capacity in challenging operating environment

8-Oct-2009

Both Air Canada and WestJet redced capacity in Sep-2009, as the Canadian airlines continue to face challenging operating condictions, characterised by economic weakness, soft travel demand and aggressive competitor pricing. [889 words]

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Subheadings:

  • WestJet unit revenues down by double digits in Sep-2009, but better than anticipated
  • First month of load factor improvements since Jan-2009 for WestJet
  • Demand environment remains a “challenge”: WestJet
  • Air Canada’s load factors stronger than WestJet’s
  • Air Canada expects 12-18 month recovery period; acknowledges that unit costs are too high
  • WestJet expects to continue to gain market share from rival

Graphs and data:

  • WestJet traffic highlights: Sep-2009
  • WestJet and Air Canada PLF (year-on-year growth): Sep-2008 to Sep-2009
  • WestJet and Air Canada capacity (ASMs) growth: Sep-2008 to Sep-2009
  • Air Canada traffic highlights: Sep-2009
  • WestJet and Air Canada PLF (%): Sep-2008 to Sep-2009
  • Air Canada vs WestJet 2Q2009 unit revenue/costs highlights
  • Air Canada vs WestJet 2Q2009 capacity plans
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