WestJet Airlines launched its long-awaited loyalty programme on Monday, hoping to win and keep more customers at a time when airline travel is starting to recover after a bruising slowdown.

Canada's No.2 airline said passengers can now earn WestJet "dollars" if they sign up for its credit card programme with Royal Bank of Canada, or through the airline's Frequent Guest programme.

The dollars can be used as cash to pay for a flight on any date to any destination, WestJet said. There are no points, redemption grids, advance bookings, blackouts or seat restrictions, it said in a statement.

WestJet has been talking for some time about a new loyalty programme but the launch was held up while the carrier ironed out teething problems with a new reservation system.

Frequent travellers in Western Canada, where Calgary, Alberta-based WestJet has more routes, are likely to find the loyalty scheme especially appealing, said Genuity Capital Markets analyst David Tyerman.

But the programme lacks the international reach of Air Canada's Aeroplan loyalty programme, Tyerman said. Air Canada passengers, especially business travellers on long-haul routes, can earn Aeroplan miles fairly quickly. Low-budget carrier WestJet flies shorter routes than its bigger rival and does not have a business class cabin section.