Thursday 27 June 2013

WestJet Encore launches; shares fall



WestJet shares dropped on Monday even as the airline's new regional discount carrier, WestJet Encore, launched today with flights to Fort St. John, Nanaimo, Vancouver and Victoria, British Columbia, as well as to Saskatoon, Saskatchewan. Destinations in Eastern Canada are expected to be added over the next two to three years. WestJet shares fell 3.3 per cent on Monday, trading at $21.90 within minutes of market close. Its stock is still up 10.5 per cent year-to-date. Earlier this month, WestJet shares declined as the company reported a May load factor, a measure of the utilization of the airline's total available capacity, by 78.5 per cent, down from 79.2 per cent in the same month a year ago.
 Revenue passenger miles, or traffic, increased 8.2 per cent year-over-year in May, and capacity, measured in available seat miles, was 9.1 per cent higher. The airline flew 1.5 million guests in May, a year-over-year increase of 7.9 per cent or approximately 110,000 additional guests. In the last I can say that WestJet suffer from lot of loss on its shares.

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