As rival airlines scale back their expansion plans, WestJet is preparing for a significant growth spurt this year, focusing heavily on domestic travel. This move comes as a result of a low Canadian dollar and increasing price sensitivity among travelers.
WestJet, the country’s second-largest airline, expects its flight volumes to increase by 10% this summer compared to last year. This growth is partly driven by the acquisition of nine Boeing 737 Max 8s from Lynx Air, a discount carrier that recently collapsed. These additional planes will help WestJet offset delays in its delivery of about 60 Boeing jets, which have been delayed due to production issues.
In May, the airline will introduce 11 new routes to its network, along with increased frequencies on existing routes. The bulk of this expansion will focus on strengthening service to Canadian cities, from Victoria to Montreal. WestJet will also resume flights to Sudbury, Ontario, and Sydney, Nova Scotia, which it had previously suspended in 2018 and 2023, respectively.
Additionally, WestJet is adding three new routes to the U.S., connecting Alberta with Alaska, North Carolina, and Utah, including Salt Lake City, a major hub for its partner Delta Air Lines.
In contrast to WestJet’s expansion, competitors like Air Canada, Porter Airlines, and Air Transat are increasing their flight volumes by only 1 to 5 percent this summer. Flair Airlines, on the other hand, will reduce its flight offerings slightly.
This expansion follows the removal of Lynx, Canada Jetlines, and Swoop (a WestJet subsidiary) from the Canadian market since October 2023. WestJet also plans to integrate Sunwing Airlines into its fleet by late April after acquiring the leisure carrier in 2023.
The airline’s intensified focus on the Canadian market signals a renewed rivalry with Air Canada. Analysts predict that both airlines will increasingly compete for domestic and Pacific routes, particularly as WestJet strengthens its position in the west and Air Canada continues to dominate in the east.
WestJet’s domestic strategy is also influenced by the weak Canadian dollar and rising cost-of-living pressures. These factors have led many Canadians to opt for domestic travel over international trips, prompting the airline to shift its focus closer to home.
Savanthi Syth, an analyst with Raymond James, and Duncan Dee, former COO of Air Canada, both believe that WestJet’s move is a response to the financial pressures affecting Canadian travelers. “Pocketbook pressures are going to significantly impact demand into the summer peak,” Dee said.
