S&P turns WestJet view to stable

S&P said it revised its outlook for WestJet Airlines Ltd. to stable from negative and affirmed the B- ratings on the company and its secured bank debt. The recovery rating remains 3, but the agency revised the default recovery percentage to 50% (from 55%) on these obligations.

“Pent-up demand for air travel supports strong near-term earnings recovery. The outlook revision primarily reflects S&P Global Ratings' greater confidence that air traffic recovery will spur earnings improvement at WestJet for the remainder of 2022 and through 2023. We base this on loosening of travel restrictions in Canada (as of April 1) and other major jurisdictions in recent months amid strong pent-up demand for leisure travel in North America and the transatlantic market, against a still-robust macroeconomic backdrop,” S&P said in a press release.

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