WestJet redeploys network to new locations after decline in demand for flights to U.S.
On Monday, WestJet announced five new routes to warmer cities as part of its upcoming winter schedule. The new destinations include Guadalajara, Tepic and Cozumel in Mexico, as well as Panama City, and Puerto Plata, Dominican Republic.
John Weatherill, WestJet Group executive vice president and chief commercial officer, said the new destinations come as the company makes network adjustments to account for "the geopolitical environment" this year. The airline has seen a decline in demand from Canadian travellers interested in flying to the U.S.
"As a result, we've redeployed some of our capacity into domestic markets across the Atlantic and to [Latin America and] Caribbean destinations," Weatherill said.
"We've seen that demand situation stabilize, but it's hard to say how it's going to develop going forward. But we have a lot of confidence in the destinations that we're offering today."
A decline in consumer interest for U.S. travel has been recorded in Canada since U.S. President Donald Trump took office in January and began commenting on a desire to make Canada the 51st state of his country. Many Canadians have opted not to visit their southern neighbour for a number of reasons, including the ongoing trade war between the two countries, increased scrutiny at the border or as a way to boycott the U.S.
Instead, Weatherill said the company has seen more interest from Canadians this year in domestic travel, or visiting Mexico, the Caribbean and Europe.
"It's been meaningful, but it's stabilized and we hope to see it begin to improve," Weatherill said about consumer demand for U.S. travel.
The new destinations are also part of the airline's overall strategy to reach more Latin American and Caribbean destinations, which it's pursuing regardless of Canada's relationship with the U.S.
Balázs Bogáts, the chief commercial officer at the Calgary airport, also acknowledged the shift in demand WestJet has seen.
"Due to the ongoing geopolitical challenges, WestJet decided to reallocate some capacity to some exciting new destinations," said Bogáts
In May, WestJet paused nine routes between Canada and the U.S. as a result of declining consumer demand, including the route between Calgary and Fort Lauderdale, Fla., which was suspended for a month in June.
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