The Daily Chase: WestJet set to launch new fares for passengers with no carry-on

Here are four things you need to know this morning.

WestJet plans cheaper fares for anyone with no carry-on: In a move that’s likely to draw some attention, Calgary-based airline WestJet says it plans to soon roll out a new fare category for passengers who are willing to forego bringing any carry-on bags that take up space in overhead storage bins. CEO Alexis von Hoensbroech told a Calgary business audience yesterday that the airline plans to roll out the new ticket class in the coming weeks. The move is likely to appeal to cost-conscious travelers who are willing to eschew access to loaded overhead bins, but it’s also the latest evolution in the ongoing quest by airlines to unbundle their fare structures, offering enticingly cheap base ticket prices while charging added fees for everything from seat selection, in-flight entertainment, refreshments and various categories of baggage. Given that the natural consumer reaction once airlines started charging for checked bags was to jam more into carry on, it’s hard to imagine this new fare class won’t come with similar unforeseen consequences. Brace yourself for boarding delays related to enforcement, and spirited aisle debates over what constitutes a “knapsack, purse or small personal item” that can be shoved under the seat in front of you — or how much you can squeeze into one.

TD beats on earnings, but anti-money-laundering woes remain a distraction: Toronto-Dominion Bank posted quarterly results before markets opened this morning, and while the numbers mostly came in higher than expected, there remain some reasons for concern around the lender. The company earned $2.04 per share on an adjusted basis, above the $1.85 the street was forecasting. A strong showing from the capital markets division was a major factor to the upside, but even as many business units saw higher profits, the bank also set aside more money to cover potentially bad loans. Loan loss provisions came in at $1.07 billion for the three months, higher than the $1 billion it set aside the previous quarter, and higher than expected. The bank’s ongoing problems related to a U.S. government probe into money-laundering safeguards continues to dominate the narrative around the company, with the bank revealing last month it has set aside US$450 million in relation to one of three regulatory probes on the issue. That’s racking up costs with no end in sight, although the company noted in its earnings release that a “comprehensive overhaul” of its AML program is “well underway.”

Nvidia surpasses high expectations once again: Nvidia posted quarterly results after the bell yesterday, and the numbers from the chipmaker continued to surpass the lofty expectations. The company took in US$28 billion in revenue during the quarter, up 18 per cent from the previous period and up by an astounding 262 per cent year over year. The company’s share price has topped $1,000 this morning; a major reason why the company announced a 10 for 1 stock split. While the company’s torrid growth tied to AI shows no signs of slowing, there was even some good news for slow and steady dividend investors, as the company upped its quarterly payout 150 per cent. At 10 cents per share on a $1000 stock, the yield is microscopic, but considering how much cash the company cranks out every quarter, there’s every reason to expect that figure to grow exponentially moving forward.