WestJet Q3 net profit down 66% as fuel costs, labour issues rise
WestJet overcame rising fuel prices and other headwinds to post a Q3 net profit of C$45.9m (US$35m), down 66.3% from the $135.9m reported in the year-ago quarter. The carrier has faced “downward pressure from the dramatic increases in fuel price and competitive capacity, along with the lingering impact of the threat of industrial action,” CE Ed Sims said. The airline’s fuel costs rose 44.2% year-over-year, largely the result of a 37.1% increase in per-liter costs. On the labour side, WestJet pilots, represented by ALPA, threatened to strike in May, resulting in lost bookings, according to the airline. The contentious negotiations and increased fuel prices contributed to a Q2 net income loss of $20.8m, the airline said. The airline’s total Q3 revenue increased 3.8% YOY to $1.3b. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-10-31/unaligned/westjet-q3-net-profit-down-66-as-fuel-costs-labour-issues-rise
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WestJet Q3 net profit down 66% as fuel costs, labour issues rise
WestJet overcame rising fuel prices and other headwinds to post a Q3 net profit of C$45.9m (US$35m), down 66.3% from the $135.9m reported in the year-ago quarter. The carrier has faced “downward pressure from the dramatic increases in fuel price and competitive capacity, along with the lingering impact of the threat of industrial action,” CE Ed Sims said. The airline’s fuel costs rose 44.2% year-over-year, largely the result of a 37.1% increase in per-liter costs. On the labour side, WestJet pilots, represented by ALPA, threatened to strike in May, resulting in lost bookings, according to the airline. The contentious negotiations and increased fuel prices contributed to a Q2 net income loss of $20.8m, the airline said. The airline’s total Q3 revenue increased 3.8% YOY to $1.3b. <br/>
