Canadians can expect 'lots of bargain options' for winter travel, says WestJet CEO

WestJet’s CE officer Alexis von Hoensbroech says Canadian flyers can expect more deals on airfares this winter and next summer, as pent-up travel demand moderates and productivity improves in the airline industry. “There are markets that have seen strong pent-up demand that drove pricing, because there was an imbalance between supply and demand, the most prominent being on (transatlantic routes) over the summer,” von Hoensbroech said in an interview with Yahoo Finance Canada. While travel demand has remained resilient, he says it is now more in line with capacity, which has helped bring prices down. At the same time, von Hoensbroech says productivity levels are improving as the airline overcomes a pilot shortage, helping drive operational costs down. “I think there will be lots of bargain options for this winter and also next summer,” he said. Strong pent-up demand following the pandemic combined with capacity that remains below 2019 levels resulted in higher airfares, particularly when it came to international travel. According to data from FlightHub, the average price for an international flight topped $1,516.71 in July, a 35% increase compared to the previous year. But that pent-up demand appears to be tapering off. Statistics Canada reported this week that airfares plummeted 19.4% in October compared to the same month last year, as airlines boost capacity and travellers reconsider trips due to higher costs. Still, von Hoensbroech says demand remains resilient. WestJet, which is a private company owned by Onex Corp. and does not publicly disclose its financial results, has reported a profit in the first three quarters this year, he says. The airline is on track to surpass pre-pandemic capacity levels next year. WestJet is in the midst of a strategic shift that has seen it focus on service in Western Canada – “returning WestJet to its roots” – while also expanding its leisure and sun destination offerings through the help of its acquisition of Sunwing. “It doesn’t mean it’s a 180, or that WestJet is going back to the very beginning,” von Hoensbroech said of the change in strategy. The airline first launched in 1996 as a low-cost carrier and didn't fly east of Winnipeg until 2000. “It’s about focusing on the things that have made WestJet strong in the past, and also stopping things that actually weren’t that successful.”<br/>