WestJet posts strong results in 1Q2014 despite impending cost rises; looks to widebody international

Canada's WestJet achieved strong financial results during 1Q2014 despite challenges from currency fluctuations and the continued spool up of its regional subsidiary Encore. Its previous warnings of cost creep came to fruition, but despite that did not greatly diminish WestJet's top-line results.

The carrier is citing sequential improvement in its unit revenue performance, which has been a drag on WestJet's performance during the last year as the airline has undertaken significant projects that it believes will ultimately shore up revenue over the long term. However, WestJet is refraining from issuing definitive unit revenue guidance, and is only assuring the trend of improvement will continue.

As it works in the short term to restore unit revenue traction, WestJet's closely watched evaluation of creating a long-haul operation appears to be inching closer to reality as it works to put all the pieces in place to extend its business model on a broader international scale.