WestJet still flies high

Article Excerpt

WESTJET AIRLINES $13.49 (Toronto symbol WJA; SI Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 138.8 million; Market cap: $1.9 billion; No dividends paid) fell 3% on news that Sean Durfy will resign as the company’s chief executive officer. His replacement is Gregg Saretsky, WestJet’s executive vice-president of operations. Sudden resignations like this always add to a stock’s uncertainty. However, the new CEO has 25 years of experience in the Canadian airline industry. As well, the change will have little impact on WestJet’s low air fares and strong focus on customer service. These benefits continue to help it lure customers away from Air Canada, its chief rival. In 2009, WestJet’s share of Canada’s air-travel market rose to 38% from 36% in 2008. The weak economy and low consumer confidence continue to hurt demand for air travel. However, WestJet has a new, fuel-efficient fleet and a low cost structure. It also serves more destinations than many of its competitors. These strengths will help the company…