Pretty much everyone knows the aviation industry has been in one of the longest freefalls in the world.
Nothing goes right, it seems, for the carriers who have been struggling for a return to profitability.
It looks obvious that the freefall that started after 9/11 finds new barriers no matter which way they turn.
International disease fears, high fuel prices, a sick world wide economy, and regional events that seem to have international implications.
Westjet, the Canadian based low cost carrier, has gone through its own challenges, even paying off Sean Duffy several million dollars so he can “spend more time with his family”.
For the money he got I will become a full time babysitter for my grandkids and do their shopping and cleaning to boot.
But Westjet has a service attitude that seems to keep attracting customers that stay.
Their on board jokes are often corny. They sometimes make you carry your luggage to the turnstile. And their prices are only competitive since Air Canada won’t let them undercut them often.
Yet here they are announcing a $21 million 2nd quarter profit, more than double that of last year.
Air Canada in the meantime announces a 2nd quarter loss of over $200 million against comparative income last year of over $150 million.
And Westjet suggests its next growth will be from out of Canada destinations, and Westjet Vacations, its leisure division is starting to make a significant mark in the Canadian sun destination sector.
Analysts are not entirely pleased with Westjet’s performanc expecting even more vis a vis Revenue per Available Seat Mile, expecting more.
But all in all the signposts for Westjet are pointing in the right direction. And Air Canada still has to figure out the formula to black numbers.
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