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WestJet shares fall on forecast cut, CEO exit


By Nagarkatti

(Reuters) - Airlines Ltd cut its forecast for a revenue metric on Thursday and said Officer was retiring, sending its shares down as much as 6.3 percent on Thursday.

Canada's second-largest carrier appointed as its new An industry veteran, Sims joined in May 2017 after serving as of Airways, an air navigation service provider in

Saretsky was at WestJet's helm for eight years during which WestJet's stock rose 64 percent as he introduced regional Encore and some popular rewards programs.

However, has run into issues ahead of the launch of its ultra-low-cost-carrier (ULCC) Swoop after said the company was trying to bypass the union by luring its own pilots to fly for Swoop under different working conditions.

"The change in leadership continues to add to our concern around future execution of ULCC and widebody strategy," equity research firm analysts wrote in a note.

"We wonder if the relationship with the employee group could be a cause for the retirement of Mr. Saretsky."

said on Thursday it expects revenue per available seat mile (RASM) to increase by 2.5-3.5 percent for the current quarter, down from its previous forecast of 4.5-5.5 percent, due to harsh weather conditions.

WestJet's shares were down 4.8 percent on the

(Reporting by Nagarkatti in Bengaluru; Editing by and Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 21:17 IST