WestJet's revenue from managed corporate business travel
increased almost 7 percent year over year in the first quarter, president and
CEO Gregg Saretsky said.
Total revenue increased 8 percent year over year to C$1.1
billion during the quarter, and unit revenue increased year over year for the
first time in two years, WestJet reported. The growing corporate travel
segment, a relatively new target for WestJet, contributed, according to
Saretsky."Everyone has become more price sensitive, and WestJet's brand is
attracting those travelers who are a little more price sensitive," he
said.
Revenue from WestJet's premium economy product rose nearly 30
percent year over year during the quarter, compared with an 18 percent
year-over-year increase for all of 2016, Saretsky added.
Traffic rose 6.8 percent year over year in the first quarter,
and WestJet increased capacity 5.5 percent. Its load factor increased 0.9
percentage points to 83 percent. Yield was up 1.2 percent.
WestJet reported net earnings of C$48.3 million, down from
C$87.6 million in the first quarter of 2016. That decline included a hit from
irregular operations related to severe winter weather and a C$18.5 million
adjustment to the carrier's maintenance provision.
The
carrier this week also announced it will purchase as many a 20 Boeing 787-9
Dreamliner aircraft through 2024. WestJet will use the aircraft to expand
service to Europe and serve destinations in Asia and South America.