The Globe and Mail reports in its Wednesday edition that the airline industry is enjoying a stretch of packed
airports and bumper profits. The Globe's Mark Rendell writes that Air Canada and WestJet are riding high in the
boom, with the former boasting
records in profit, share price
and passenger numbers as it
rolled out a slew of new international
routes in the second
quarter.
WestJet also reported strong
quarterly earnings, although the
news was dampened by an announcement
that the company was pushing
back the planned launch date
for its ultralow-cost carrier.
WestJet still managed
to rack up double-digit gains in
passenger revenue.
Air Canada earned a record
$300-million or $1.08 a diluted
share, compared with $186-million
or 66 cents in the 2016 second
quarter. WestJet also saw positive earnings
growth of 11.1 per cent year
over year, bringing earnings up
to $48.4-million or 41 cents a
diluted share.
As with Air Canada, high passenger
numbers drove total revenue
to $1.055-billion, up from
$949.3-million in the same period last year.
WestJet benefited
from rebounding demand
in the Alberta market, where
leisure passenger traffic fell in
the wake of the 2014 oil price
slump.
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