AIR CARG O WEEK


WEEKLY NEWS


CANADA’S MARKET COOLS BUT OPPORTUNITY ABOUNDS


BY Edward HARDY


Operating within the airfreight industry is about finding the right model and the right market that meets the needs of the business and the changing market demands. WestJet Cargo is acutely aware of this, having adjusted its air cargo strategy last year, putting two Boeing 737-600s back into storage in response to regional conditions. However, the carrier isn’t concerned in the slightest, looking to better utilise its resources for charters, partnerships and operating specific routes on an ad hoc basis, while utilising the strength of its belly-hold offering through its global network of passenger aircraft. “We operate two business lines: the belly cargo business and the


freighter business. 2024 was the best year in the history of WestJet Cargo for belly freight,” Kirsten de Bruijn, Executive Vice President of WestJet Cargo, stated “This success is largely due to our investment in digital systems, operational efficiency, and hiring the right people. Everything we envisioned has now come to fruition.” “On the freighter side, there are a few key factors at play. We operate


narrowbody freighters, and while the Asian market is booming, our aircraft don’t have the range to reach those markets. “Meanwhile, North America is still down year-over-year in terms of yields, with too much capacity in the market. Given these conditions, we made the strategic decision to only operate freighters when it is financially viable.” Part of a larger group, WestJet is looking to benefit from its


flexibility in reallocating resources while still maintaining its presence in the freighter market and actively exploring new opportunities. “We continue to operate charters, but we need a structured,


scheduled operation for the freighters to be sustainable. These aircraft are best suited for e-commerce or serving smaller markets, such as island and Caribbean routes, where they make economic sense. That’s our focus moving forward,” de Bruijn explained. “Given the strong performance of our belly cargo operations this


year, we are optimistic that 2025 will bring positive developments for our freighter fleet as well.”


Current conditions There are two key aspects to WestJet’s business: domestic passenger and cargo operations within Canada, and international airfreight, which is largely import-driven, as its home nation doesn’t manufacture much for export. In


the last


freight forwarders, customs clearance, or extensive paperwork. Anyone can call WestJet, ship their goods, and pick them up at the destination warehouse. International cargo, however, is far more


structured, involving freight forwarders and regulatory


processes,” de Bruijn highlighted. “In terms of volume trends, Canada’s reliance on immigration


means a steady influx of people and goods. During the winter months, demand for air cargo naturally increases as trucking routes


to remote northern areas become impassable. This


seasonal shift is something we’ve consistently observed. “On the international side, we’ve made a significant shift toward


structuring our network for year-round operations, particularly with our 787 widebodies. We’ve focused on increasing flight frequencies to key destinations like Paris and London, moving to daily services. “This stability has helped us attract more business from


European freight forwarders, who prefer predictable, daily cargo schedules. This shift has led to substantial growth in inbound cargo to Canada, alongside our existing Asian imports.”


Tailored approach WestJet’s domestic network is essential to its operations since it relies heavily on belly cargo capacity. By tailoring solutions to specific market needs, WestJet is not just moving cargo—we’re providing reliability and ef ficiency for our customers. This has led to the introduction of specialised services like Campus’Air, which was developed in response to demand from schools, sports teams, and students moving between cities. “WestJet has always been committed to providing af fordable


air travel for Canadians, and we wanted to extend that same principle to cargo,” de Bruijn declared. “We also launched Priority Cargo, which addresses a key


issue for our customers—capacity uncertainty on narrowbody aircraft. Unlike widebody more


predictable, narrowbody


operations, where cargo flights


can fluctuate


space is based


year, WestJet’s strong performance has been


driven primarily by its expansion into Asia, with Dreamliners now operating on those routes. This has significantly boosted import volumes. Additionally, economic factors such as inflation and high living costs in certain cities have led to increased movement of families to Western Canada, which benefits the carrier. “Domestic air cargo is more straightforward—it doesn’t require


on passenger baggage volumes. Customers needed a way to guarantee their shipments wouldn’t be of floaded due to last- minute baggage increases. Priority Cargo ensures their shipments take precedence, particularly within the domestic market, where narrowbody operations dominate.”


Optimising operations Beyond booking platforms, digitalisation is enhancing efficiency, revenue optimisation, and service improvements across the industry. WestJet Cargo has already made significant strides in process optimisation, particularly with the implementation of SmartKargo two years ago.


www.aircargoweek.com 10 MARCH 2025 ACW “As an international carrier, if 90 percent of your business comes


through freight forwarders, platforms like Cargo.one can help you reach that same 90 percent market,” de Bruijn said. “However, our situation is different—nearly 50 percent of our airway bills are for domestic shipments, where awareness of third-party platforms like cargo.one is minimal.” “For our international business, these platforms have been highly


beneficial. Currently, around 70 percent of our freight forwarders use online booking, which is a strong adoption rate. “However, for the domestic side, we don’t yet have a similar solution.


Right now, customers must call WestJet directly to make bookings, ask about cargo pickup locations, and navigate a largely manual process. Because domestic shippers don’t have airway bill stock or online booking options. “Our priority for 2025 is implementing a digital payment strategy tailored to the domestic market”.


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