WestJet is shutting down its budget airline, Swoop.
The company made the announcement in a news release Friday, noting that the ratification of its recent deal with its pilots allows it to integrate all of its staff at various airlines into a single banner.
“As negotiated in the collective agreement, the WestJet Group will now begin integration efforts of its ultra-low-cost airline, Swoop,” the airline said.
“Through an expedited process, the airline anticipates a full integration into its mainline operations by the end of October. To avoid traveller impact, Swoop will operate its existing network through to the end of its published schedule on October 28. Swoop employees will move to WestJet.”
The move comes as the Air Line Pilots Association (ALPA) announced its members had ratified their recent pact with the airline, one that brings in 24 per cent raises over four years, and puts Swoop pilots on a similar footing as WestJet’s in terms of seniority and compensation issues.
The union said 87 per cent voted in favour of the deal, “which goes a long way to recognizing the value and expertise the pilots bring to their airline and will help solve many of WestJet’s pilot attraction and retention issues.”
Swoop was launched nearly five years ago, in June 2018. It offered heavily discounted rates with few frills to cost-conscious travellers. A handful of other so-called ultra low-cost carriers have taken to Canada’s skies in recent years, including Flair, Lynx and Canada Jetlines.
While Swoop’s demise will remove a major player in Canada’s discount travel space, WestJet CEO Alexis von Hoensbroech says the airline will continue to offer affordable options.
“This integration will enhance our ability to serve a broader spectrum of guests,” he said. “Instead of only 16 aircraft serving the ultra-low-cost market, each aircraft, in our 180-strong fleet, will offer ultra-affordable travel options through to a premium inflight experience.”
But ultimately the news is a bad development for consumers, according to John Gradek, a lecturer at McGill University who studies the airline industry.
“It has implications in terms of the choices that Canadians will have in terms of an alternative ultra-low-cost carrier,” he told CBC News.
Although it started in 1996 as a regionally focused airline with generally cheaper prices, WestJet is no longer a discount airline, Gradek says. “The loss of Swoop basically eliminates a carrier that was specializing in low cost and it’s going to be a loss to Canadian travellers.”
More moves to come?
Gradek says it is not surprising to see WestJet make the move, as one of the main advantages of Swoop in the first place was its lower cost base.
“One of the conditions for creating Swoop was to have a different salary scale,” he said. “With the ALPA agreement that differential that allows you to have some competitive advantage price wise disappears.”
“WestJet has choices — they’re now looking at Sunwing and that’s the next shoe that’s going to fall,” he said. “how far do you take this integration that started with Swoop — do you do the same thing with Sunwing?”
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
