WestJet Eyes Growth With Boeing 737 MAX 10, CEO Warns High Fuel Prices Are Here To Stay

WestJet is preparing for a new chapter of growth with the arrival of the Boeing 737 MAX 10, an aircraft the airline says will deliver more seats, greater fuel efficiency and added capacity as it navigates rising operating costs and shifting travel demand.

Speaking at the ALTA AGM & Airline Leaders Forum on Monday (Oct. 19), WestJet CEO Alexis von Hoensbroech outlined how the airline’s fleet modernization strategy will help position the Calgary-based carrier for future growth, particularly in Latin America and the Caribbean.

A key piece of that strategy is the Boeing 737 MAX 10, which the FAA certified on Tuesday (Oct. 20). It’s expected to begin arriving at WestJet in spring 2027.

“The 737-10 MAX is built to deliver an exceptional travel experience for both our guests and our WestJetters,” the airline wrote in a statement.

WestJet is the launch customer for the aircraft, with 101 on order. Configured with 199 seats, the MAX 10 will offer substantially more capacity than the older Boeing 737-700s it is replacing, while delivering better fuel efficiency on a per-seat basis.

“From day one it will be a very efficient aircraft, because the engine is the same as the MAX 8’s, but it carries many more passengers,” von Hoensbroech said in an interview with Aviacionline at the forum. “With the configuration it will have, it will be a tremendous aircraft, and we are very much looking forward to it.”

The timing is especially important as WestJet prepares for what its CEO believes could be a prolonged period of elevated jet fuel prices.

“I think we have to work on the assumption that fuel will stay high throughout 2027, and perhaps 2028,” von Hoensbroech said. “And we should also prepare for a scenario in which it rises even further, because it is not just crude but refined products, such as jet fuel and diesel, and global refined product inventories are falling.”

More Seats, Lower Costs

The MAX 10 will play a central role in WestJet’s effort to retire older, less efficient aircraft while increasing the number of passengers it can carry.

WestJet currently operates approximately 200 aircraft, including between 150 and 160 Boeing 737s.

The airline is nearing the end of its MAX 8 deliveries and will then transition to receiving MAX 10s, which will largely replace its ageing Boeing 737-700 fleet.

The difference in seating capacity is significant. WestJet’s MAX 10s will accommodate 199 passengers, compared with 132 on its 737-700s.

The added capacity will allow WestJet to carry more travellers on individual departures while improving fuel consumption per passenger, an increasingly important advantage as operating costs rise.

“The fleet we are retiring is the 737-700, and fuel prices accelerate that retirement, because it is the least fuel-efficient aircraft we have in terms of consumption per seat,” von Hoensbroech said.

WestJet has already sold all 27 of its owned 737-700 aircraft and has a handful remaining under lease. The airline expects to retire the remaining aircraft within the next one to two years, depending on market conditions.

However, the transition has taken longer than planned.

“The only downside is that we should have received it more than two years ago,” von Hoensbroech said.

The first MAX 10 was originally scheduled to arrive in September 2024, but certification and production delays have pushed back deliveries.

Latin America & Caribbean Growth

The MAX 10’s arrival is particularly significant for WestJet’s extensive network in Mexico, Latin America and the Caribbean, where the airline has built a major presence through its scheduled operations and vacation business.

von Hoensbroech said WestJet operates between 110 and 120 daily flights to the region during peak season, carrying approximately 20,000 travellers a day.

The airline serves 40 destinations in the region from 25 Canadian cities, with approximately half of that traffic travelling to Mexico.

Cancun alone can see between 25 and 30 WestJet flights on a peak day.

“Canadians love to travel, and they love the destinations of Latin America and the Caribbean,” von Hoensbroech said. “It has always been a strong business for WestJet, partly because in winter it is so cold in Canada that people need to escape to beautiful, sunny places, and I believe the most beautiful ones are in the Caribbean.”

The airline’s existing MAX 8 fleet has already helped expand its network by making longer nonstop routes commercially viable.

von Hoensbroech pointed to Calgary–Panama City, a flight of nearly seven and a half hours, as an example of the aircraft’s capabilities.

The MAX 10 will add seating capacity and another fleet option as WestJet adjusts its operations to match demand across its network.

The airline is also seeing growing demand for premium leisure travel following the integration of Sunwing and Swoop and the reconfiguration of its aircraft.

“We completed the Sunwing and Swoop integrations. We reconfigured the fleet and we now have a significant premium cabin; in fact, we are seeing enormous growth in the premium leisure segment to this region,” von Hoensbroech said.

Fuel Prices Could Remain High Through 2028

While the MAX 10 offers opportunities to improve efficiency, von Hoensbroech cautioned that the broader airline industry faces significant economic headwinds.

He said rising fuel costs are already affecting ticket and vacation package prices, with airlines and tour operators having little choice but to pass along the additional expense.

“The most obvious is fuel, which has soared,” he said. “As an airline and as a tour operator, we have to pass that cost on, so people should expect prices to rise as fuel rises. There is no way around it.”

The higher costs are also limiting growth that might otherwise have occurred.

The CEO said he sees few signs of immediate relief in global energy markets and believes airlines should plan conservatively rather than count on a rapid decline in fuel prices.

“My planning assumption is that next year will be the same as today,” he said. “If it improves, fantastic. But hope is never a good strategy: better to prepare for the worst and hope for the best.”

Changing Travel Patterns

Beyond fuel costs, WestJet is also adjusting to changing travel preferences among Canadians.

von Hoensbroech said political tensions between Canada and the United States have contributed to a shift away from traditional U.S. vacation destinations, benefiting markets such as Mexico, Jamaica and the Dominican Republic.

“Many people who used to go to Florida, Arizona or California now go to Mexico, Jamaica, the Dominican Republic,” he said.

However, he acknowledged that some travel demand has disappeared altogether.

WestJet has also been affected by the suspension of its Cuba operations, historically a major component of its sun destination business.

von Hoensbroech described the loss of Cuba as a setback, noting that the destination had been particularly attractive to price-sensitive Canadian vacationers.

Some of that demand has shifted to other Caribbean destinations, but not all travellers can afford the higher cost of alternative vacations.

Despite those challenges, WestJet is continuing to expand selectively.

The airline is preparing to launch its first South American route, connecting Calgary with São Paulo, Brazil, on Dec. 15 using a Boeing 787-9.

The seasonal service will give WestJet a new market for its widebody fleet during the Canadian winter, when demand for transatlantic and transpacific flying typically declines.