FP says low oil, loonie may hinder Air Canada, WestJetThe Financial Post reports in its Thursday edition the falling cost of oil could morph into "a significant headwind" for Air Canada and WestJet, says CIBC. The Post's Kristine Owram, writing in Trading Desk, quotes CIBC World Markets analyst Kevin Chiang as saying in a note, "The elephant in the room is the concern of what lower energy prices mean for the Canadian economy and the impact on air traffic demand." Mr. Chiang points to the 2009 recession, and figures airlines could take a 5-per-cent hit to demand growth. So far, Air Canada and WestJet figure demand has not been affected by Alberta's weakening economy, but, "it is a question of when and not if" that happens, Mr. Chiang said. The falling Canadian dollar makes it more expensive to purchase jet fuel and for Canadians to travel abroad. However, Air Canada and WestJet have some flexibility if demand starts to weaken. Neither airline has cut fares despite falling fuel prices. This means they have room to stimulate demand with cheaper tickets if necessary. "We do not view the headwinds related to a weakening Alberta economy to be an insurmountable hurdle given the positive structural changes that have occurred in the Canadian airline industry," he said.