Fuel boost for WestJet

Article Excerpt

WESTJET AIRLINES $32.32 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 127.8 million; Market cap: $4.2 billion; Div. yield: 1.5%) has jumped to new all-time highs over the past month as fuel prices continue to drop along with oil prices. Fuel makes up around a third of an airline’s operating costs. Meanwhile, the company’s load factor rose to 80.5% from 79.7% in November 2013. Load factor is the percentage of available seats occupied by paying passengers. The increase was even more positive considering that the company increased its capacity by 6.9% to meet higher demand. Demand for WestJet’s flights remains high, and the launch of its new Canadian regional airline, WestJet Encore, has also gone well. WestJet is a buy. buy. …