WestJet increasing fares to counter rising costs of fuel

    WestJet CEO Greg Saretsky reportedly stated the carrier is increasing fares to counter cost inflation brought on by the foreign exchange and rising fuel, noting: “We have a history over 21 years of over time being able to offset the rising cost of energy” (Globe and Mail, 06-Feb-2018). The carrier expects to return to its ROIC target of 13% to 16% over the next eight quarters, after reporting a ROIC of 10% in 4Q2017. Mr Saretsky said: “We’re in a very strong revenue environment, very strong demand environment. So we’ll continue to take pricing increases where possible where that demand permits so and I expect as we work through the year, we will effectively cover the cost of fuel”.