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WestJet Extends Fuel-Hedging Strategy
October 12, 2005
WestJet (TSX:WJA) today announced that it has extended its fuel-hedging strategy, announced September 8, using financial instruments to help mitigate the effects of volatile fuel prices. WestJet has bought forward a portion of its exposure to USGC Jet Fuel in Canadian dollars over a term and quantity that relates to the airline's advanced ticket sales. The chart below outlines specific details of this arrangement: ---------------------------------------------------------------------- Month Quantity Hedged (approximate) Hedge Price (CAD/litre) ---------------------------------------------------------------------- October 50.0% $0.661 November 25.0% $0.663 December 12.5% $0.630 ---------------------------------------------------------------------- This approach to fuel-risk management addresses the unique challenges airlines face with respect to the sale of advanced tickets in an environment where future costs are uncertain. WestJet intends to monitor the price of fuel and will continue to hedge its fuel needs as the volatility of fuel prices necessitates this measure. WestJet is Canada's leading low-cost airline offering scheduled service throughout its 34-city North American network. Named Canada's most respected corporation for customer service in 2005, WestJet pioneered low-cost high-value flying in Canada. With increased legroom and leather seats on its modern fleet of Boeing Next-Generation 737 aircraft, and live seatback television provided by Bell ExpressVu on its 737-700 fleet, WestJet strives to be the number one choice for travellers. FlyForLess is not affiliated with any media companies nor does it represent or work for WestJet. This article is published with the sole purpose of making information available for those who wish to stay informed on WestJet's actualities. |
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