WestJet continues attempts to recoup its revenue slide as new international service debuts

In a role reversal that has transpired during the past year, WestJet finds itself staving off cost creep while its major rival Air Canada continues to enjoy benefits of its cost cutting initiatives driven largely by adding seats to aircraft to operate more high-density jets.

But in addition to rising unit costs, WestJet also faces some unit revenue pressure as the roll-out of its new subsidiary Encore continues to weigh down the airline's unit revenue performance. Even as the airline believes that positive unit revenue trends will continue, it is refraining from offering specific guidance on its unit revenue performance for CY2014.

WestJet's restraint in supplying unit revenue guidance could be an indication of its expectations that growth in that metric during 2014 could be scant. For the moment it seems the Canadian domestic market is absorbing the capacity additions by Air Canada and WestJet; but whether long-term pricing traction is achievable remains uncertain.