WestJet reports strong first quarter net earnings

WestJet Airlines (Calgary) today reported first quarter 2011 net earnings of C$48.2 million, or 34 cents per share, a significant improvement from C$2.4 million or 2 cents per share reported in the first quarter of 2010. The airline achieved an operating margin of 10.3 per cent which represents an increase of 6.4 points compared to the first quarter of 2010.

Revenue per available seat mile (RASM) was up 12.1 per cent year over year which was mostly attributable to significant yield improvement and slight load factor growth. “We are pleased that the market has absorbed the fare increases put in place to offset rising fuel costs. These strong first quarter results represent net earnings per guest of roughly twelve dollars which highlights the competitive nature of the airline industry,” said Gregg Saretsky. For the second quarter of 2011, WestJet is projecting fuel costs, excluding hedging, to range between $0.95 and $0.98 per litre, and is anticipating continued strong year-over-year RASM growth.

For the first half of 2011, WestJet is expecting cost per available seat mile (CASM), excluding fuel and employee profit share, to be relatively flat on a year-over-year basis compared to the first half of 2010.

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I have started the ultimate digital photo library of the fascinating world of airliners and airlines. The goal is to have the complete history of all airlines and the various aircraft operated. I have been photographing airplanes since 1965. Join us in this adventure.