October outlook

[Flightlevels]

INTERVIEW-WestJet CEO says October bookings drop amid crisis
Thu. October 02, 2008; Posted: 03:46 PM
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CALGARY, Alberta, Oct 03, 2008 (Reuters via COMTEX) -- WJAVF | Quote | Chart | News | PowerRating -- WestJet Airlines Ltd has seen short-term travel demand drop as the global financial crisis has intensified in the past 10 days, but the carrier is still confident in its longer-term growth plans, Chief Executive Sean Durfy said on Thursday.
"We've seen demand for bookings come off in the near term, which would be the October timeframe. But looking out into November, December there's still quite a bit of strength there," Durfy told Reuters in an interview.

"I think what's happening is the system is shocked, and it's really all about consumer confidence. Folks are sitting back and saying, 'What does all this mean to me?'"

WestJet, Canada's second-largest airline, has not revised plans to increase capacity by 16 percent to 18 percent this year and by about 8 percent in 2009, despite an economic slowdown that has forced most major carriers to chop capacity, he said.

The one question mark for next year's plan is the strike by machinists at Boeing Co that began last month, Durfy said. WestJet plans to take delivery of 10 Boeing 737s in 2009.

"We probably will have delays in deliveries, potentially, depending on how long that goes," he said.

Meanwhile, the airline has examined the credit-worthiness of its aircraft lessors amid the U.S. credit crunch and believes it is in good shape, he said.

For aircraft purchases, the U.S. Export-Import Bank guarantees WestJet's debt.

"We don't necessarily need to go to any of the banks for a capital infusion. We've got over C$800 million ($740 million) on the balance sheet and all of our growth can be funded internally," Durfy said. "So we're in a really good spot."

WestJet shares were off 12 Canadian cents at C$11.48 on the Toronto Stock Exchange, about half their 52-week high.

Durfy attributed the drop to the overall wave of selling in the financial markets, but pointed out the stock has held up better than most in the airline sector in North America, which was already hit this year by record high fuel prices.

[Four1oh]

here comes the storm. no surprise here. I'd bet we're even going to still be profitable. Oh, and my job is still secure which is all that really matters.

[C-MNOP]

<10.00........AAAAAAAARRRRRRRRRRRRRGGGGGGGGGGG

Im sure its just a bounce. The whole market went for a swing today.

[squawk 7600]

you mean even WestJet isn't safe?

Four1oh...
you sound like an arrogant prick, but I could be wrong.

So does WestJet still have big plans to expand, or are they going to sit tight, ride it out and see where we are headed?

[CanadaEH]

We are going to continue growing. We plan to add around 8 aircraft next year which represents around a 10% growth in capacity. I believe the same goes for 2010 and in 2011-2012 we plan to add 10-14 aircraft per year, I think. During 2011-2012 our first 10 aircraft come up for lease which will provide us with the flexibility to either renew those leases (grow capacity) or terminate and return the aircraft to the lessor (low growth or a drop in capacity). My money is on further growth given our interline agreement with Southwest and the rumored addition of BA/Cathay/AF/KLM/etc. We are one of if not the most financially stable airline in NA, so even if the economy tanks we're in a better position than most to weather the storm. We are not immune, but given our costs and financial position we are in a better position.

[Four1oh]

you mean even WestJet isn't safe?

Four1oh...
you sound like an arrogant prick, but I could be wrong.

So does WestJet still have big plans to expand, or are they going to sit tight, ride it out and see where we are headed?

I guess it depends on your own mood how to take me. It's a text-based forum after all, you can read anything however you want. I commented that the shit will hit the fan, looks like it is. I am proud to work for a company that has one of the highest profit margins in North America, should I apologize for that? I suppose if I am a prick I'd reply in kind. Cheers.

[moe]

bubbs aint no prick, his thick lenses just put a positive spin on a shitstorm. save me a fishstick.

[Four1oh]

Decent! *monkey grunts*

[A330]

Have to step in on this one. This is interesting, highest profit margins? Really pulling at straws now aren't we ...don't forget the best north american flag carrier, north of seattle.

Who really cares? AC has always been behind the curve, not even on the first page of world class carriers, cutting costs to the point of paying for every last item on the aircraft, is the crappy little headset still free? The livery is robin egg blue awful ( the old one was smart in comparison ), cabin crew are tired unmotivated and vacant, fleet is aging rapidly and has been for years... anything I've forgotten?

But don't forget about those profit margins.... And what benefit would any small profit margins be to you anyway? Like the kid at McDonalds telling you that he works for one of the most profitable companies in the world making 8 bucks an hour. Kid, just give me #5 to go....

Contract 2009? good luck

[daveg]

Have to step in on this one. This is interesting, highest profit margins? Really pulling at straws now aren't we ...don't forget the best north american flag carrier, north of seattle.

Who really cares? AC has always been behind the curve, not even on the first page of world class carriers, cutting costs to the point of paying for every last item on the aircraft, is the crappy little headset still free? The livery is robin egg blue awful ( the old one was smart in comparison ), cabin crew are tired unmotivated and vacant, fleet is aging rapidly and has been for years... anything I've forgotten?

But don't forget about those profit margins.... And what benefit would any small profit margins be to you anyway? Like the kid at McDonalds telling you that he works for one of the most profitable companies in the world making 8 bucks an hour. Kid, just give me #5 to go....

Contract 2009? good luck

They were taking about WestJet.....but still good.