WestJet SWOT: Underlying financial strength serves to diminish formidable short term challenges

Canadian hybrid carrier WestJet has settled into another ambitious year during 2015 as it adds more service to Europe and introduces Boeing 767 widebodies into its fleet. That expansion accompanies further growth of its regional subsidiary Encore, which is growing in Canada's eastern provinces.

But depreciation of the CAD against the USD and some economic pressure in Canada's western provinces where WestJet has a large presence are posing challenges for the airline in 2015. At the same time WestJet is facing oversupply in the Caribbean and Mexico, which is creating pricing pressure in those regions.

With its underlying financial strength, WestJet should be able to withstand most of the challenges its faces in 2015 as the company continues to evolve from a traditional low-cost airline to a global competitor. This CAPA analysis of WestJet's strengths, weaknesses, opportunities and threats continues a series of SWOT reports on global airlines.