WestJet tries to ease concern over falling unit revenues and rising capacity

Underlying WestJet's 5% rise in 2Q2013 profits was a 2% drop off in yields and a 4.6% decline in unit revenues, which continued a trend of contraction of those metrics for 1H2013 as yields were essentially flat and unit revenues fell 1%.

WestJet's weaker performance in yields and unit revenues is triggering questions regarding its capacity expansion in 3Q2013 and its planned growth of 7.5% to 8.5% for the remainder of the year.

The carrier's management remains unapologetic for its projected 4% to 6% increase in supply for 2014, and believes its 11%-12% rise in capacity for 3Q2013 is being easily absorbed in the market.