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Description:  With fuel costs per litre up close to 40% over last year, WestJet’s latest earning report is not pleasant reading for shareholders. Profits are down this quarter. In addition to the fuel cost pressures, the threatened pilots’ strike in May probably impacted passenger bookings. And, like others in the industry, WestJet feels the intense pressure of low-cost providers.

Date:  October 30, 2018

Source:  cbc.ca

Link: https://www.cbc.ca/news/canada/calgary/westjet-profit-third-quarter-fuel-prices-down-1.4883627

 

Discussion points:

1) Have you ever flown WestJet? How would you rate this airline compared to others?

2) From reading this article, what would you say are some of the key challenges faced by airlines in setting ticket prices?

3) Take a look at the opening vignette in Chapter Nine of Wiley’s Financial Accounting: Tools for Business Decision-Making. What does WestJet use as the useful life of its airplanes in calculating depreciation?

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