Westjet planned to reduce dividend

The CEO of WestJet airline, Greg Saretsky increased the ticket price by 2 per cent. This price rise was due to the result of falling Canadian dollar in international market, and it was reported that there may be more rise in fare. The officer also said that there may be more hike in the fair due to various reasons. Another flight companies also raise the ticket price to match WestJet's price rise. The CEO further added that there will be no price rise in package tours. Bob Cumming, the Sales vice President announced WestJet won't add currency surcharge to vacations. He said that he respects the shareholders and there are facing the currency situations.

The increase in flights to sunny places may decrease the chances of ticket price, spoken by Cameron Doerkesen of National Bank Financial. WestJet is increasing their capacity whereas Air Canada would increased more seats in flights to destinations like Las Vegas and the Caribbean. 
The travelling cost is increased through ancillary charges like change of reservations, cancelling flights and purchasing food.  Now the passengers pay nearly $10.09 more than previous year and help WestJet to increase its revenue.

Due to the lack of technology, the charges on first bag to USA and Canada are on hold so that will help grow more loyal customers. All the passengers are charged for more than on bag. The charge on first bag by Air Canada is not certain, added by Saretsky. The unhedged operating costs are adversely affected by each cent decrease in penny. 

The airline company will reduce its dividend share from 20 percent to 12 percent. WestJet traded as WJA in Toronto Stock Exchange was noticed of $67.8 million of income in last quarter and revenue rise of $100 million. The expenses generally reduce which exclude fuel and profit shares.
The flights for Dublin and Ireland are fully booked and there is plan to add more destinations by couple of years. The share price increased by 85 cents and reached at $25.70 on afternoon of Tuesday.

 Opinion

 The falling of Canadian Dollar has resulted dinto price hike of all the airplanes. And if the Canadian dollar go futher low, there may be chances of further fare increase. And this price increase will effect the travelling passengers. The divedend share is also reduced to keep prices low. The company has to every possible effort to make prices low.

Question 1.
How dividend share will effect the WestJet's revenue?

Question 2
How WestJet survive the Financial crisis?

Bibliography

Marowits, R. (2014, February 4). WestJet to raise quarterly dividend. Retrieved February 20, 2014, from GlobalNews.ca: http://globalnews.ca/news/1127107/westjet-to-raise-quarterly-dividend/