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WestJet Airlines Ltd
Symbol WJA
Shares Issued 109,291,514
Close 2014-09-19 C$ 32.47
Market Cap C$ 3,548,695,460
Recent Sedar Documents

Post says WestJet, Air Canada go with the flow on fees

2014-09-22 08:05 ET - In the News

Also In the News (C-AC) Air Canada

The Financial Post reports in its Saturday edition the move toward a la carte pricing is widely seen as an inevitability in an industry that is under increasing pressure to embrace new sources of revenue. The Post's Kristine Owram writes both WestJet and Air Canada announced last $25 charges for first checked bags. "We predict that the inclusion of free baggage as a benefit of a fare will disappear worldwide over the course of the next few years," said Jay Sorensen at IdeaWorksCompany, a Wisconsin consultancy that helps airlines generate revenue through ancillary fees. Global airline ancillary revenue soared nearly 1,200 per cent between 2007 and 2013 as more carriers embraced the concept of "unbundling," or charging separately for a variety of services. Last year, airlines around the globe generated $31.5-billion in ancillary revenue, consisting of fees for bags, commissions on travel-oriented services like car rentals and hotels, and the sale of frequent-flier points (all figures U.S.). That is up from $2.45-billion in 2007 and amounts to an average of $16 per passenger. "It's creating the difference between a global profit and a global loss for the airline industry," Mr. Sorensen told the Post.

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