WestJet will increase capacity after recording a rebound in yields during 2Q2014

Robust demand is driving Canada's WestJet to revise its CY2014 capacity upwards, largely through higher aircraft utilisation. The airline is opting to increase its supply as it recorded strong 2Q2014 results that included solid growth in profitability and better than expected unit cost performance.

WestJet also saw a rebound in unit revenues and yields during 2Q2014 after encountering pressure in those metrics during the past year - mostly driven by its own capacity growth from the debut of its regional subsidiary Encore and pricing pressure in some of its markets.

The airline believes that many initiatives it has undertaken during the past few years - fare bundles, the creation of Encore, and other product improvements - are beginning to bear fruit, which is driving an overall bullish outlook for WestJet as it embarks on the operation of widebody jets in late 2015.