Ottawa’s fall financial report announced several measures aimed at cracking down on “junk fees,” but the CEO of Canada’s second-largest airline says his company is not following the proposals already outlined. Said to follow one.
Finance Minister Chrystia Freeland named Canadian airlines, wireless providers and banks as businesses where Canadians can expect to see additional fee reductions in the coming months.
As for the airline industry, the government is working with Transport Canada to amend the Air Passenger Protection Regulations to ensure airlines can carry children under 14 in a seat with an accompanying adult at no additional charge. Announced.
WestJet CEO Alexis von Hohensbroek said in a televised interview on BNN Bloomberg that the Calgary-based airline “has always done this” and that it was not included in the financial update. He added that he was “surprised” that it was included.
von Hohensbroch said on Thursday: “If all airlines were to implement it, this would not raise any concerns, other than why they were introducing it.”
Decline in freight prices
According to Statistics Canada, air travel expenses were down nearly 20 per cent in October compared to the same month last year.
Mr von Hohensbroek said he expected there could be more deals on flights in the coming months.
“There is more capacity in the market, and I think some passengers may want a little bit of a discount,” von Hohensbroek said. “Canadians can expect better bargains this winter than last winter.”
Outlook for 2024
WestJet expects some market weakness heading into 2024.
According to a Bloomberg analysis, major issues for American airlines include airfares, capacity expansion to lower costs per seat, and fluctuating fuel costs.
Von Hohensbroek said Canada is about a year behind the U.S. in recovering from COVID-19, and some of the problems that exist in the U.S. now will spill over into Canada in 2024. I predict that will happen.
Overall, WestJet is optimistic about its growth potential next year, he said.
WestJet Airlines began grounding planes earlier this year after navigating labor disputes that included tense contract negotiations with its pilots, before averting a strike with an 11th-hour agreement.
Six months later, von Hohensbroch said the airline’s staffing situation has improved.
“Throughout much of last year, we were short on pilots. We weren’t able to fly planes as much as we wanted to,” he said. “Having reached the required staffing levels, we will be able to operate more flights and spread the cost over more seats.”
Von Hohensbroch said the company’s cost per seat is better than it was a year ago.
“We feel like we’re back. We’ve made it through the pandemic, we’re back in the black and we’re well prepared for whatever comes next,” he said.
