WestJet cuts 5 cities in eastern Canada, blames coronavirus and fee increases
Canadian airlines have been hit hard by the coronavirus pandemic. With minimal government aid, leaders at Air Canada and WestJet have cut flights for longer and deeper than their U.S. counterparts as they wait for flyers to return.
WestJet, for one, cannot wait any longer. The Calgary-based carrier is indefinitely curtailing service to five airports in eastern Canada airports, it said Wednesday. CEO Ed Sims said the move, which will take place in November, will reverse "decades" of growth by the carrier that increased travel options for Canadians and lowered fares.
"It has taken decades to build this highly competitive position, and over the last eight months we are beginning to see these efforts unravel," Sims said in a video message shared Tuesday. He cited COVID-19, travel restrictions and recent fee increases by airport operators and the country's air traffic control organization Nav Canada for the cuts.
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WestJet will remove Charlottetown (YYG), Fredericton (YFC), Moncton (YQM), Quebec City (YQB) and Sydney (YQY) from its map on Nov. 2. In addition, the airline will also cut service to its two remaining destinations in Atlantic Canada — Halifax (YHZ) and St. John's (YYT) — by about 80%.
Air Canada has also slashed flights due to the pandemic and lack of government support. The Montreal-based carrier disclosed plans to end service to eight smaller communities in eastern Canada, including Bathurst (ZBF), North Bay (YYB) and Val d’Or (YVO), in June.
In addition, flights on popular boutique carrier Porter Airlines remain suspended through Dec. 15. The airline initially grounded its fleet in March expecting to takeoff again by June.
Related: Air Canada drops 8 cities from route map amid coronavirus adjustments
Canadian airlines have resumed more flying since the summer. In November, carriers plan to fly nearly 70% of what they flew a year ago in the domestic market, according to Cirium schedules. This does not include the suspensions unveiled by WestJet on Wednesday.
For comparison, U.S. airlines are only due to fly about 60% of what they flew a year ago during the month, Cirium shows.
But simply flying more flights does not mean airlines are doing so profitably. In his message, Sims said that WestJet has only flown about 1 million travelers the the seven months since March. This compares to 2 million flyers per month before COVID.
Related: Risk of coronavirus on planes less than getting struck by lightning
WestJet and Porter's suspensions leave Air Canada as the only national carrier serving the eastern cities of Charlottetown, Fredericton, Moncton and Sydney in November, according to Cirium.
That is similar to the situation the communities faced after Air Canada acquired competitor Canadian Airlines International in 2000. WestJet slowly expanded to fill the gap and served all of the cities except Fredericton by 2009, Cirium shows.
WestJet has a partnership with Delta Air Lines that the two are seeking to elevate to a transborder joint venture. That pact is pending with U.S. authorities and faced opposition from several airlines, including JetBlue Airways and Southwest Airlines, prior to COVID-19.
Related: Southwest Airlines wants WestJet to give up New York slots under Delta pact
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.