Latest news with #vonHoensbroech
Yahoo
29-05-2025
- Business
- Yahoo
Varcoe: U.S. air travel demand 'has not recovered' yet from Canadians cancelling trips south, says WestJet CEO
The temperature surrounding trade tensions between Canada and the United States may have been lowered, slightly, in recent weeks with less '51st state' talk from President Donald Trump — but Canadian travellers don't seem to be in a forgiving mood. At least, not yet. Since the beginning of February, demand for air travel to the U.S. has dropped significantly and 'it has not recovered since,' WestJet CEO Alexis von Hoensbroech said this week. 'There are some markets that are picking up a bit, but I think it's still early days,' von Hoensbroech told reporters Tuesday after speaking to the Calgary Chamber of Commerce. 'So it's not a change in trend up to this moment.' The head of the country's second-largest airline delivered an address about the state of the company — and Canada's airline industry — to the local business group, discussing the challenges, opportunities and major developments ahead. That included WestJet officially completing its integration of Sunwing Airlines on Wednesday, two years after the acquisition was initially announced. One of the broader issues facing the entire airline sector is the phenomenon of Canadians cancelling holiday plans, or simply opting to not book spring and summer trips into the United States. WestJet suspends nine U.S. routes as Canadians fly elsewhere 'U.S. tourism is going to lose out': Calgarians looking elsewhere to travel this year The trend began earlier this year after Trump imposed tariffs on Canada and Mexico — and, later, other countries — and it was exacerbated by the president's repeated talk about Canada becoming a U.S. state. 'When all the rhetoric started around 51st state and tariffs and so on, we could see in our bookings how angry Canadians became,' von Hoensbroech told the audience. 'We saw that literally . . . thousands of Canadians that had their vacations booked or planned into Florida and California, thought, 'Ahh, maybe Jamaica and Mexico are also nice sun destinations.' So they cancelled those, which was a short-term issue for us. 'We then shifted our own flights from Florida into the Caribbean, and from California and Arizona into Mexico . . . However, it's not net neutral. So we did see a significant impact in our business.' Canadians booked air travel to other countries, but it did have an impact, he added. 'If I just look into how our next couple of months are booked, then I see sort of mid-to-high teens (percentage) less bookings than there were a year ago,' he said after the speech. The phenomenon of Canadians opting not to travel to the U.S. has been showing up in cross-border travel statistics for several months. The country's largest airline, Air Canada, reported earlier this month that it was seeing booking on transborder markets drop by low teens percentage points, on average, for the following six months. In April, return trips by Canadians by air fell 20 per cent compared with the same month a year earlier, according to Statistics Canada preliminary figures. Return trips by automobile plunged 35 per cent — the fourth straight month of year-over-year declines in both categories. A research note by ATB Economics on Wednesday pointed out the number of Canadians returning from south of the border through the Calgary and Edmonton airports dropped 5.6 per cent during the first four months of 2025 from year-earlier levels. And it's not just Canadian flyers showing their displeasure with the trade war by shifting their travel patterns. Through April, the number of Canadians returning from the U.S. by both air and road fell 22 per cent, and for Alberta, it decreased eight per cent from the same period last year, said ATB deputy chief economist Rob Roach. The trade conflict will lead to more Albertans travelling to other countries outside the U.S., but it will also likely see more consumers taking vacations and spending their tourism dollars inside the country, Roach said in an interview. 'I do think it's a temporary thing, but it will last and go (on) as long as the trade war is hot,' he said Wednesday. 'They are still tariffs and we are one tweet away — or Truth Social post away — from this blowing up again. So, until there's a sense that things are back to normal, I think we'll see this reflected in the actual numbers.' After Prime Minister Mark Carney met with Trump in Washington earlier this month, the annexation discussion subsided from the White House. However, the U.S. president mentioned it again on social media Tuesday, saying Canada could join his country's Golden Dome defence system for $61 billion but it would cost 'ZERO DOLLARS if they become our cherished 51st state. They are considering our offer!' How long could a travel boycott continue? 'We do assume that at some point in time, there will be some kind of agreement, hopefully,' von Hoensbroech added. 'What we have seen in the past in our industry is that whenever there's a change in demand pattern for political reasons, it's usually transitional, and long-term demand trends usually flow back.' Susan Bell, a senior vice-president with consultancy Rystad Energy, said the decline in travel to the U.S. isn't just coming from Canada, but also from fewer travellers coming from other countries — and it's showing up in less jet fuel demand. About 20 per cent of U.S. aviation fuel demand is typically tied to international flights. 'Foreign travel into the U.S. has dropped dramatically,' Bell said at a Rystad conference in Calgary on Wednesday. 'Europeans are not travelling to the U.S. People from Mexico are not travelling to the U.S., and that is really impacting international jet fuel demand in the U.S.' Chris Varcoe is a Calgary Herald columnist. cvarcoe@
Cision Canada
28-05-2025
- Business
- Cision Canada
WestJet Group completes integration of Sunwing Airlines, successfully unifying all narrowbody operations under WestJet Airlines Français
CALGARY, AB, May 28, 2025 /CNW/ - Today marks a significant milestone for the WestJet Group, as the airline officially completes its integration of Sunwing Airlines. This achievement represents two years (to the month) of dedicated work, strategic coordination and consultation, and a commitment to delivering greater value and connectivity for Canadian travellers. "Completing two airline consolidations in just two years—the first with Swoop in 2024 and now Sunwing—was complex and required coordination across every aspect of our business, from operational, labour, and regulatory areas to experiential and cultural elements," says Alexis von Hoensbroech, Chief Executive Officer of the WestJet Group. "Achieving this milestone is proof of the incredible way our unified team works together and is a clear win for WestJet and our guests; it's also a story of transformation in Canadian aviation. A huge thanks to everyone who contributed!" WestJet acquired Sunwing in May 2023, the first step of many in bringing together two distinctly Canadian travel and tourism success stories, as part of WestJet's ambition to be the leader in providing affordable and accessible sun and leisure travel for Canadians. The vision to integrate Sunwing Airlines, realized on May 29, 2025, is part of the airline's strategy to deliver new and competitive travel options, and greater overall value for Canadians in sun and leisure market, while strengthening Canada's travel industry at a critical time. WestJet has now integrated all jet aircraft under a single Air Operator Certificate (AOC), including 16 former Swoop aircraft, another nine former Lynx Air aircraft which were secured after that airline went out of business, and now 18 more from Sunwing Airlines. WestJet's unified narrowbody operation will begin to realize efficiencies once it transforms these aircraft with cabin reconfigurations to the WestJet standard interior being completed through 2025. The result of this integration will be a consistent onboard experience for guests, with a more diverse range of onboard product offerings, including Premium, Economy, Extended Comfort, and UltraBasic seating available on all 150 Boeing 737 aircraft across the airline. WestJet's concept for expanding cabin optionality will serve the evolving needs of Canadian travellers who appreciate the ability to choose between a range of products and price points, without compromising on network. Additionally, guests flying on WestJet with reservations through the Sunwing Vacations brand, which continues to exist as Canada's post popular vacations provider, or its wholly owned tour operator businesses, can expect an improved end-to-end travel experience, as Canada's leading vacations provider continues to streamline processes and booking flows with guests in mind. "The final Sunwing-operated flight this week is a time to reflect," von Hoensbroech notes, recognizing that Sunwing has played an important and influential role in the Canadian leisure travel market. "I know every Sunwing employee, past and present feels their contributions have mattered to advancing the experience of air travel. To all WestJetters and former Sunwing team members: thank you. This milestone is your achievement, and a proud moment for us all." About WestJet WestJet took to the skies in 1996 with just over 200 employees and three aircraft operating service to five destinations. Since then, WestJet has pioneered low-cost travel in Canada, cutting airfares in half, and increasing the flying population in Canada by more than 50 per cent. Following integration with Sunwing in 2025, more than 14,000 WestJetters support nearly 200 aircraft and connect guests to more than 100 destinations across North America, Central America, the Caribbean, Europe and Asia. As a major Canadian employer that includes WestJet Airlines, Sunwing Vacations Group and WestJet Cargo, the WestJet Group is Canada's leading low-cost airline and largest vacation provider, with a united purpose of providing affordable and accessible air and vacation travel to Canadians. Learn more about WestJet at (also available in French)
Hamilton Spectator
27-05-2025
- Business
- Hamilton Spectator
WestJet CEO says it's ‘fundamentally wrong' to treat air travel as a luxury
CALGARY - The chief executive of WestJet Group says the federal government should not treat air travel as a luxury in a country as vast as Canada and reducing costs to the industry would help foster national unity. In a speech to a Calgary business audience, Alexis von Hoensbroech questioned why transport infrastructure like bridges, passenger rail and ferries get federal support, while the government imposes a host of costs on the airline industry that are then passed along to consumers. 'We need to build Canada — now even more than in the past — and aviation plays a key role' he said Tuesday. Von Hoensbroech quipped that his address had to compete for attention with the throne speech delivered on the same day by King Charles in Ottawa, which set out the Liberal government's legislative agenda. 'But the King actually said today, 'The government is guided by conviction that the economy is only truly strong when it serves everyone' and many, many Canadians are struggling to get ahead,' von Hoensbroech said. His presentation included a slide comparing government-imposed costs in Canada versus the United States. In Canada, sales tax, navigation fees, airport improvement fees and security fees amounted to $133 in a round-trip ticket price, whereas south of the border the excise tax and segment fee, passenger facility charge and security fee added up to $49. He said it's 'fundamentally wrong' that air travel is not treated as essential in a country where it's the only connection to the outside world in many communities. 'If the government wants to unite Canada and take down internal trade barriers, then reducing the cost of air travel by reducing fees that are imposed on air travel and ultimately make tickets cheaper would be the right thing to do,' von Hoensbroech told reporters. 'Right now, there are millions of Canadians that cannot afford an air ticket, and a lot of this is because of the infrastructure costs and fees and charges are so high, and so much higher than in most other countries.' Von Hoensbroech's remarks follow calls from several business leaders in recent months to reduce internal trade barriers and expand Canada's international reach as the U.S. becomes an increasingly unreliable trading partner. In a backlash against U.S. President Donald Trump's tariffs and expressed desire to make Canada the '51st state' and treatment of marginalized groups, many Canadians have cancelled trips and booked flights to spots outside America over the past five months. The WestJet CEO said bookings into the next couple of months suggest Canadians' cross-border travel on the airline is down in the 'mid-to-high-teens percentage points' compared to last year, but that traffic is shifting to Europe and the Caribbean. Rival airline Air Canada said in an email Monday it will suspend three more U.S.-Canada routes — Toronto-Indianapolis, Montreal-Detroit and Montreal-Minneapolis — starting this fall for 'commercial' reasons. The cuts come after the country's largest carrier in March reduced flights by 10 per cent to Florida, Las Vegas and Arizona — usually go-to hot spots during spring break season. Competitors Flair Airlines and Air Transat have made similar moves. Last month, the number of Canadians returning home by air from the United States dropped 20 per cent compared with April 2024, according to Statistics Canada. The number of American plane visitors to Canada fell 5.5 per cent. Trump has in recent weeks tamped down his Canadian annexation talk and he seemed to strike a genial tone during an Oval Office meeting with Prime Minister Mark Carney earlier this month. Von Hoensbroech said his airline is already seeing signs the U.S. market is picking up a bit. 'What we have seen in the past in our industry is that whenever there's a change in demand patterns for political reasons, it's usually transitional and long-term demand trends usually flow back to where they were in the past,' he said. 'Whether this is going to happen and when this is going to happen remains to be seen. But we assume that ultimately this will be over and people will continue to come to the U.S.' This report by The Canadian Press was first published May 27, 2025. Companies in this story: (TSX: AC) — With files from Christopher Reynolds in Montreal
Calgary Herald
27-05-2025
- Business
- Calgary Herald
WestJet CEO outlines actions for affordable air travel
The leader of western Canada's largest airline argues that air travel across the country is treated like a luxury, when it should be considered essential. Article content Article content WestJet CEO Alexis von Hoensbroech proposed several steps the federal government could take to make air travel more affordable for Canadians. Article content Article content The direct charge of government fees and infrastructure costs for an airplane ticket in Canada totals $133 — which includes sales tax, navigation fees, airport improvement fees and security fees. Article content 'If we look south of the border . . . it's significantly less,' said von Hoensbroech, showing data that the cost in the U.S. is $49, including excise tax and segment fees, a passenger facility charge and security fees. Article content Reducing fees down to U.S. levels would 'stimulate enough demand' to feed another airline the size of WestJet, he said. Article content Von Hoensbroech said over the last 30 years, airfares have gone down by 50 per cent for WestJet, when adjusted for inflation. Article content 'This is something that we as WestJet are actually very proud (of). We are the airline that brought competition into the country,' von Hoensbroech told the audience. Article content Article content However, he argued government-controlled fees, rates, taxes and charges went up by two-thirds in the last three decades. Article content 'The fact that this is so high is a barrier to flying for millions and millions of Canadians, because they cannot afford (to),' he said. Article content Von Hoensbroech noted a World Economic Forum study that ranked air ticket price competitiveness in Canada 101st out of 119 countries. Article content 'This is not because airlines are evil, this is because there is such a high floor of fees and charges,' he said. Article content Article content 'Guests should have the option to choose whether (they) want the compensation or (they) maybe don't take the compensation, but you get cheaper airfare,' he said.
