WestJet will implement a new $60 fee on companion voucher bookings due to the surge in fuel prices. The airline’s companion voucher program, a perk for WestJet RBC Mastercard holders, allows a second passenger to travel at a reduced fare on a round trip.
The additional fee will be temporary and begins on April 8, affecting bookings made after this date. WestJet stated that the surcharge will be in place until jet fuel prices stabilize, attributing the increase to the ongoing Middle East conflict.
According to a WestJet spokesperson, the surcharge aims to offset the impact of escalating fuel costs, which constitute a significant portion of airline operating expenses. Unlike regular airfares that can be adjusted more easily, the structure of companion vouchers limits pricing flexibility.
To address the higher fuel expenses, WestJet will consolidate flights on less popular routes and adjust seasonal travel schedules. The airline has reduced capacity by approximately one percent in April and three percent in May. Passengers affected by these changes have been offered re-accommodation options on the same travel day.
Wayne Smith, a professor specializing in hospitality and tourism at Toronto Metropolitan University, highlighted the challenges faced by Canadian airlines, including WestJet, in managing rising costs amid the fuel shortage. He emphasized the substantial fuel consumption of aircraft compared to cars, citing significant cost increases for flights like Vancouver to Hong Kong on a Boeing 787-9.
Smith suggested that additional surcharges may be introduced by other airlines as well, while WestJet’s flight consolidations could lead to fuller flights for travelers. He noted the financial complexities of the airline industry and the necessity of surcharges and consolidations for survival, hinting at potential increases in baggage fees.
The escalating fuel prices have prompted several airlines to adjust their pricing strategies as they navigate the economic impact of fuel cost hikes.