Here is a couple of fast facts regarding AC and WS profitability:
- In domestic market both AC mainline and WS mainline make money. Where AC loses money is the AC express routes, both where ACE competes with WS/WS-Encore and where WS has no market presence.
- In the transborder vacation market, AC mainline breaks even or loses a little bit of money on routes that compete with WS. However AC rouge turns these routes into profitable status. This is because AC rouge has better market mix than AC mainline (mainline cannot sell business cabin to save their life). Additionally, WS makes a lot of money on the transborder vacation markets through package deals at WS Vacations. If WestJet Corp split out the airlines results from the vacation package tour results, it would likely result in the airline operation losing money on a stand-a-lone basis.
- In the transborder business market, AC has a large presence but WS has very small presence. The markets where WS and AC compete are money losing propositions for WS. However because the presence is small, other segments of the WS business make-up/hide these losses.
- In the Caribbean market WS makes a lot of money off the Vacation package market, but AC has a very small presence. If WestJet Corp split out the airlines results from the vacation package tour results, it would likely result in the airline operation losing money on a stand-a-lone basis.
- AC loses money in Q1 and Q4 on the Asia, S America, and Europe international operations where WS has no presence. During Q3 where AC makes up for their international losses, AC results are comparable to WS.