WestJet Airlines began life 21 years ago as a low-cost airline in the Southwest Airlines vein: low fares and minimal frills. Over the years, as it sought to compete and grow, the frills, fares, and costs grew along with it. Now the carrier isn’t only headed back to its discount roots, it’s digging even deeper. The airline is planning to tackle the cheapest segment of the air-travel market by launching a ULCC modelled on Ryanair. WestJet describes the move as defensive, intended to fend off incursions from rivals and helping stem the flow of some 5.5m Canadian leisure travellers who cross the border to fly bargain airlines such as Allegiant Travel and Spirit Airlines. This domestic leakage has spurred entrepreneurs to consider starting other ULCCs in Canada, a nation notorious for steep aviation operating costs and airfares. <br/>
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New German airline Azur Air is preparing to start operations in June instead of April as previously announced, a company spokesperson confirmed. The carrier plans to operate leisure flights. Azur Air is owned by Amsterdam-based Holding NW International BV. “The exact date [to start operations] will be announced,” the spokesperson said. “Our first routes will be to Palma de Mallorca (Spain); destinations in Turkey, Greece and long-haul flights are also planned to Punta Cana (Dominican Republic).” Azur Air will initially operate 2 leased 330-seat Boeing 767-300ERs. “By the end of this year, the fleet will grow to 3 aircraft. At the moment, Azur Air Germany has 130 employees [cabin and cockpit crews],” the spokesperson confirmed. <br/>
Icelandair Group reported a Q1 2017 net loss of US$34.9m, widened from the $17m loss for the 2016 Q1. The Q1 of the year is traditionally the weakest of the year for many airlines, but Icelandair’s result was the heaviest Q1 loss it had suffered for several years. Yields dipped 13% compared to Q1 2016 and the group was affected by adverse currency exchange rates. Capacity grew 20% to 2.6b ASKs, with roughly two-thirds of that figure coming as a result of increased services to North America; the bulk of Icelandair’s flights connect Europe to North America via Keflavik airport in Iceland. The airline saw a 9% drop in the price it paid for fuel in Q1 2017 compared to a year earlier and said that 59% of its estimated fuel usage over the coming year had been hedged at a “weighted average swap price” of $517/tonne. <br/>