On the surface, low oil prices are a positive for WestJet Airlines Ltd. (TSX:WJA). With fuel a major cost for the airline, the decrease in the price of fuel means that the company can save a great deal of money.
Oil prices are low enough that they are a major threat to most sectors of Canada's economy. But WestJet Airlines Ltd. (TSX: WJA) and TransAlta Corporation (TSX: TA)(NYSE: TAC) could rally on the back of that weakness.
For energy companies, the drop is posing a challenge to control costs, but for companies like Air Canada (TSX: AC) and WestJet Airlines Ltd. (TSX: WJA), this slump seems welcomed. This is because lower oil prices could result in lower jet fuel prices.
WestJet Airlines Ltd., has succumbed to the lure of baggage fees and the $3.35-billion (U.S.) they generated for U.S. airlines last year, so it will start charging passengers who check their bags on its flights within Canada and to the United States ...