WESTJET Strategy Overview

Accounting standards change IFRS 15 - Revenue from Contracts with Customers The impact of this change is not incorporated into WestJet's 2017 Investor Day projections The revised IFRS standard will replace existing revenue recognition guidance and is effective January 1, 2018 for annual and interim reporting periods. We will adopt this standard using the full retrospective approach on the required effective date. We anticipate a change in the timing of the recognition of breakage on certain ticket sales which we believe will shorten our period of revenue deferral. We anticipate that the majority of our ancillary services will no longer be considered distinct from our guest's associated flight, and therefore, will be presented within Guest revenue whereas today it is presented within Other revenue. Additionally, the timing of recognition of certain ancillary fees will be deferred until the flight occurs. We anticipate this will predominantly impact change and cancel fees which are currently recognized at the date of the ticket change. We will continue to defer the revenue related to WestJet rewards issued to guests. The allocation methodology of how we apportion the airfare between the flight segments and WestJet rewards will change. Upon implementation, we anticipate that tier status will be considered a marketing expense therefore no revenue will be deferred related to the guest benefits associated with tier status. We are finalizing our work on the impact on our co-brand credit card program, the quantitative impact of all the anticipated changes and drafting illustrative disclosures to our quarterly and annual 2018 financial statements. 88 TSE: WJA

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