WestJet CEO pledges fares will not rise due to airline mergers

WestJet passenger jets parked at departure gates at the Calgary International Airport on Wednesday, May 31, 2023.THE CANADIAN PRESS/Jeff McIntosh

CALGARY -

WestJet CEO Alexis von Hoensbroech says bringing Swoop and Sunwing Airlines under its banner won't lead to higher airfares as integrating the discount carriers will also tamp down costs.

In a phone interview today, the chief executive said Canada's second-biggest airline will be able to swap out planes more easily and expand the range of destinations for travellers on the hunt for cheap tickets.

Like rival Flair Airlines and Porter Airlines, WestJet aims to vastly expand its business over the next few years, with 61 Boeing 737s on the order book over the next five years, plus an option for 20 more.

Over the past two weeks, the Calgary-based company told employees it would shut down Swoop at the end of October and Sunwing Airlines over the next few years, folding them into WestJet's main operation while maintaining Sunwing's tour package division.

Some experts have warned that the mergers would result in lower competition and higher airfares, particularly for sun destinations.

While competition remains intense and prices low on major Canadian routes such as Toronto to Vancouver, fares to sunny getaways, U.S. cities and European hot spots have all gone up over the past year.

This report by The Canadian Press was first published June 21, 2023.