Canadian airline WestJet has pivoted to offering other airlines and logistics companies the option of chartering its small fleet of Boeing 737-800 cargo jets to move goods after recently discontinuing scheduled cargo service because of weak demand.
WestJet Cargo on Tuesday issued a news release promoting its charter service in North America and Latin America utilizing Boeing 737-800 converted freighters. The cargo division said it introduced charter service in the fourth quarter of 2023, but this is the first time there has been any public announcement about freighter aircraft being available for long-term rental.
The announcement said WestJet’s cargo division has completed more than 40 charter flights since the product’s inception. Most of those flights are being conducted by two 737-800 freighters running between Montreal or Toronto and Orlando, Florida, according to data on flight tracking site Flightradar24.
FreightWaves broke the news last month hat WestJet had abandoned its scheduled freighter operation and put two of four Boeing 737-800 aircraft in storage one year after launching an all-cargo delivery business. WestJet has leased out the two remaining freighters on a dedicated basis to Cargojet and is flying daily for the Canadian cargo airline between Newark International Airport in New Jersey and Bermuda.
Now WestJet is offering a similar option to other customers.
“WestJet has adjusted its air cargo strategy in response to market conditions. It was determined that the freighters would be better optimized for charters, partnerships, and operating specific routes on an ad hoc basis,” Kirsten de Bruijn, executive vice president of cargo, told FreightWaves in an August email interview. “Consequently, we have shifted away from regular network flying with the 737-800 converted freighter between Canadian and U.S. cities.”
The airline still operates semi-scheduled service from Toronto to Havana every other week, based on demand.
WestJet introduced commercial freighter operations with a single aircraft in April 2023. The start was delayed 10 months until Transport Canada approved the structural modifications required to convert the used 737-800s into all-cargo aircraft. By the time the modified aircraft were ready for duty, the air cargo market had collapsed, resulting in significant missed revenue opportunities for WestJet.
The initial network consisted of daily routes between Toronto and Miami, and Vancouver, British Columbia, and Los Angeles, with intra-Canada connections to Calgary, Alberta, and Halifax, Nova Scotia. Later, WestJet mixed in three flights per week between Los Angeles and Guadalajara, Mexico, and between Los Angeles and Calgary.
WestJet’s strategy was for high-frequency shuttles in a tight network serving freight forwarders and other businesses, driven in part by e-commerce volumes. But Canada proved to be a difficult market for a small startup cargo airline because of Canada’s relatively small population and stiff competition from Cargojet, Air Canada and ground couriers. The 737-800 converted freighter is best suited for express parcel networks rather than general cargo because of the volume density and efficiency of cargo handling, many experts say.
WestJet declined to respond to questions seeking details about the change in business model.