WestJet Airlines, Canada's second-largest airline, reported a 42 percent rise in first-quarter earnings as it flew more passengers despite fare increases.
WestJet also said it selected Bombardier to supply 20 aircraft for its new regional airline, expected to launch in the second half of 2013.
The company said earnings rose to CAD$68.3 million, from CAD$48 million in the same period last year.
Revenue at the airline, which competes with No. 1 carrier Air Canada, increased 15.4 percent to CAD$891 million.
Load factor rose to 83 percent from 82 percent last year.
"We achieved our highest first-quarter load factor, improved the overall yield and made good progress towards our return on invested capital target," WestJet CEO Gregg Saretsky said, adding revenue growth outpaced higher fuel costs.
First-quarter costs per available seat mile (CASM) rose 4.2 percent, while revenue per available seat mile (RASM) rose 6 percent.