WestJet’s Strategic Leap: ‘Soaring Together’ Report Emphasizes Growth and Affordability

Thursday, May 23, 2024

The WestJet Group released “Soaring Together,” its initial progress report detailing the airline’s achievements throughout Canada since initiating its growth strategy nearly two years ago.

“The WestJet Group continues to drive job creation, investment and economic prosperity through the deployment of our ambitious strategy that has enabled us to expand our network and unlock more affordable travel options for Canadians,” said Alexis von Hoensbroech, WestJet Group Chief Executive Officer. “From coast-to-coast, communities depend on our reliable and affordable air service. As we build on our success to better serve our guests, we must take action to safeguard affordability.”

Key Highlights:

• In 2023, over 2.5 million tickets were sold by The WestJet Group for under $100 each, with nearly half of all tickets priced under $200.
• Over the past two years, The WestJet Group has employed more than 5,400 new staff members, bringing its total workforce to 15,000.
• WestJet has established YYC Calgary International Airport as its global hub, enhancing Calgary’s connectivity and projecting a 40% increase in seat capacity by the end of 2024 compared to 2022.
• As a leader in Canada’s western region, WestJet ranks as the top carrier in eight out of nine major Western Canadian airports.
• WestJet stands out as Canada’s most reliable major airline, exceeding industry standards in on-time departures, arrivals, and flight completions. In April 2024, WestJet ranked second among all major North American airlines for on-time performance.
• In 2023, WestJet finalized its significant acquisition of Sunwing Airlines and Sunwing Vacations, expanding its scale and market presence and dominating half of the vacation package sales in Canada through the Sunwing Vacations Group.
• To maintain affordability, The WestJet Group advocates for halting mandatory government-imposed fees and ending the collection of airport rent permanently.

Despite Canada’s costly and uncompetitive regulatory landscape, ticket prices have more than halved in real terms since WestJet’s founding in 1996, primarily due to the airline’s market entry and sustained competition.

Concerned with affordability and competitiveness, WestJet proposes the following policy changes to the federal government:

• A thorough assessment of Canada’s user-pay aviation infrastructure system, considering its effects on competitiveness, intermodal equity, border leakage, and taxpayer value.
• An immediate suspension of mandatory government-imposed fees, charges, and policies that raise travel costs.
• A stop to the federal government’s collection of airport rents.

“WestJet is committed to maintaining a transparent and low-cost structure that welcomes competition and drives the best value for our guests. Yet we operate in a very expensive and user-paid infrastructure environment that significantly drives up ticket prices for the everyday Canadian and hinders competition,” continued von Hoensbroech. “Air travellers are paying too much in government fees and charges on their plane ticket compared to other nations and other modes of travel. These changes would increase competition, lower ticket prices, and foster greater transparency for our guests.”