WestJet expands Encore’s fleet and adds widebody flights as it braces for negative 2Q unit revenues

In the midst of heightened scrutiny over its performance on long haul routes to London and its handling of economic weakness in Western Canada, WestJet has chosen to exercise options for an additional nine Bombardier Q400 turboprops - for operation by its regional subsidiary Encore. The options are the last that WestJet holds with the manufacturer, and once deliveries are complete in 2018 Encore will reach WestJet's targeted maturity of 45 aircraft.

During its three years of existence Encore has grown rapidly, and now offers 168 daily flights to 36 destinations. WestJet's execution in developing and growing Encore has largely been successful, stimulating traffic in smaller markets previously dominated by a single airline.

In addition to Encore's expansion, WestJet continues to court business travellers through its enhanced Plus product while attempting to navigate a weak unit revenue environment. The airline believes its negative performance will improve sequentially through 2016, but it is unlikely that WestJet can achieve a positive result in that metric this year.