Air Canada (AC.TO) and WestJet Airlines are set to book higher profit in 2024, according to Moody’s Investors Service. Analysts predict robust demand from travellers, despite a potentially slower global economy.
Air Canada reported soaring profit in its latest quarter. Canada’s largest carrier also saw a higher year-over-year passenger count during the recent holiday travel season. Meanwhile, privately owned WestJet has boasted about “record-breaking guest volumes” from mid-to-late December.
However, a weaker global economy in 2024, war in the Middle East, and potentially volatile fuel and labour costs could threaten their post-pandemic recovery. At the same time, Air Canada and WestJet face growing competition from low-cost Canadian carriers like Lynx Air and Flair Airlines.
“We believe operating profit…
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