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CALGARY - WestJet Airlines Inc. (TSX:WJA) is offering a lot more seat sales to travellers than it has in the past as recession-weary consumers scrutinize every dollar they spend, says the chief executive of the Calgary-based carrier.
"We have felt over this recession how discretionary the buying of an airline ticket really is," Sean Durfy told analysts on a conference call to discuss his company's third-quarter results.
WestJet and chief rival, Air Canada (TSX:AC.B), have been vying for customers by aggressively pricing their fares, a factor Durfy said had led his company to post lower third-quarter revenues.
"It is intensely competitive in this marketplace," he said.
And it appears the recession is playing a much larger role in consumers' spending decisions than the H1N1 flu scare.
The virus first surfaced in Mexico in the spring, scaring travellers away from holidays in that region for a time.
However, that does not appear to be the case anymore, Durfy said.
"Because we did have an issue with H1N1 in Mexico a while back, you would think there would be some skepticism from the travelling public but . . . we're not seeing it," he said.
"I can't associate any booking declines with the H1N1 scare."
On Tuesday, WestJet added a twice-weekly flight to Ixtapa/Zihuatanejo, Mexico, bringing the number of cities it now travels to in that country to six. The airline also recently introduced several other routes to various Caribbean holiday destinations.
Earlier Wednesday, WestJet reported profits of $31.4 million, or 24 cents per share, down from $57.9 million or 45 cents in last year's third quarter. Revenue fell to $600.6 million from $718.4 million.
Analysts polled by Thomson Reuters were, on average, expecting earnings per share of 27 cents and revenues of $603 million.
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