RE:Comment from the Westjet CEO yesterday https://globalnews.ca/news/1714203/cheaper-fuel-doesnt-mean-cheaper-canadian-airfares-this-holiday/
WestJet airfares up
Despite talk of lower airfares from WestJet of late airfares are drifting higher, RBC said. Calgary-based WestJet said last month it was looking at lowering some airfares – in part to help economy-class fliers digest a new $25 baggage fee.
“While WestJet management noted on a conference call that low fares would be a focus” the carrier is posting “robust core fare growth,” the analyst note said. According to RBC, which tracks prices using its own proprietary tool, airfares are up 2.2 per cent versus a year ago. Air Canada’s prices meanwhile are flat.
MORE: WestJet to offer lower airfares for some economy fliers
Currency offset
Oil’s drop has also hit the Canadian dollar, which is biting into some of the financial gains of cheaper fuel, Air Canada said.
“Fuel is purchased in US dollars, which has had an unfavourable impact due to the recent relative decline in the Canadian dollar,” Fitzpatrick said.
But the currency’s slide has “only modestly offset” the positives brought by cheaper fuel, according to RBC.
“The net impact of lower jet fuel prices has been significantly positive for Canadian airlines,” the analyst note said.