The number of corporate business travelers flying on WestJet
during the first quarter increased 10 percent year over year.
WestJet president and CEO Gregg Saretsky said during the
carrier's first-quarter earnings call that the increase was
"notwithstanding economic slowdown in Alberta and Saskatchewan," two
markets where the energy sector dominates. Executives also reported early signs
that demand is recovering in that sector. Commercial executive vice president
Bob Cummings said that as oil prices rose over the past month, WestJet's
executive team has reached out to corporate clients in the sector to get a feel
for where the market is going.
"The sentiment, [now] that oil is coming back to a more
certain level and Alberta [is] getting back to a healthier trajectory, is
changing," Cummings said. "Whether we've hit the bottom or not, it's
too soon to say, but I certainly feel better than three months ago."
Sales of WestJet's premium economy seating, Plus, also
increased 5.2 percent year over year during the quarter, which Saretsky said suggests
"a nice upside in future periods as the energy sector recovers." The
carrier plans to expand the offering.
In the meantime, WestJet already has slated capacity
cuts for Alberta and plans to use some of the fleet from those cuts to
expand the carrier's charter program.
WestJet revenue declined 4.8 percent year over
year to C$1 billion in the first quarter. Its load factor rose 0.5 percentage
points to 82.1 percent, as traffic increased 7.6 percent and capacity increased
7 percent. The carrier reported first-quarter net earnings of C$87.6 million,
down from the first quarter of 2015's C$140.7 million.