WestJet stock hits all-time high as passenger load increases

At Air Canada, load factor dips while total traffic rises

Last Updated: Wednesday, December 5, 2007 | 11:31 AM ET

CBC News

WestJet shares hit an all-time high Wednesday after the Calgary-based airline said its planes flew with a greater passenger load last month than they have in any November.

WestJet stock was up 93 cents to close at $22.58 in TSX trading.

WestJet three-month chart

The airline said its load factor — the percentage of available seats filled with paying passengers — was 75.6 per cent last month, up 2.2 percentage points from the same month a year earlier.

WestJet also made more seats available, boosting capacity by 14.8 per cent. Traffic, as measured by revenue passenger miles, grew by 18.3 per cent.

"We are pleased with our strong load factor during this shoulder period," said WestJet CEO Sean Durfy in a statement.

On Tuesday, Durfy said WestJet had no plans to trim capacity, as some U.S. airlines have done.

"The economy in Canada is very robust," he told reporters after a speech in Calgary.

"We have no plans to reduce any capacity. We're going to continue to increase capacity."

Durfy said the airline has been somewhat insulated from the effect of rising fuel prices by a corresponding rise in the Canadian dollar. Jet fuel is priced in U.S. dollars.

Air Canada's load factor slips

After the markets closed Wednesday, Air Canada reported that its November load factor was 76.1 per cent, a drop of 1.1 percentage points from November 2006.

Total traffic as measured by revenue passenger miles rose 2.1 per cent.

"These solid results produced in this traditionally slower off-peak season underscore effective capacity management on an on-going basis," Air Canada CEO Montie Brewer SAID. 

Air Canada, like WestJet, also made more seats available in November, but its boost in capacity was a more modest 3.6 per cent.

Air Canada shares rose 18 cents to $12.58.