WestJet (Calgary) today announced its fourth quarter and year-end results for 2013, with record net earnings of $268.7 million (all figures in Canadian dollars), or $2.03 per diluted share, up from the net earnings of $242.4 million, or $1.78 per diluted share reported for the full-year 2012. For the fourth quarter, the airline reported diluted earnings per share of $0.52, up from $0.46 reported last year. This represents WestJet’s 35th consecutive quarter of profitability, and based on the trailing twelve months, the airline achieved a return on invested capital of 13.9 per cent, compared with the 13.8 per cent reported in the previous quarter.
| Operating highlights (stated in Canadian dollars) |
| Q4 2013 | Q4 2012 | Change | Full-year 2013 |
Full-year 2012 |
Change | |
| Net earnings (millions) | $67.8 | $60.9 | 11.3% | $268.7 | $242.4 | 10.9% |
| Diluted earnings per share | $0.52 | $0.46 | 13.0% | $2.03 | $1.78 | 14.0% |
| Total revenues (millions) | $926.4 | $860.6 | 7.6% | $3,662.2 | $3,427.4 | 6.9% |
| Operating margin | 11.0% | 10.6% | 0.4 pts | 10.9% | 11.0% | (0.1 pts) |
| ASMs (available seat miles) (billions) | 5.942 | 5.487 | 8.3% | 23.971 | 22.064 | 8.6% |
| RPMs (revenue passenger miles) (billions) | 4.769 | 4.493 | 6.1% | 19.591 | 18.263 | 7.3% |
| Load factor | 80.3% | 81.9% | (1.6 pts) | 81.7% | 82.8% | (1.1 pts) |
| Segment guests | 4,557,606 | 4,314,024 | 5.6% | 18,485,144 | 17,423,352 | 6.1% |
| Yield (revenue per revenue passenger mile) (cents) | 19.43 | 19.16 | 1.4% | 18.69 | 18.77 | (0.4%) |
| RASM (revenue per available seat mile) (cents) | 15.59 | 15.68 | (0.6%) | 15.28 | 15.53 | (1.6%) |
| CASM (cost per available seat mile) (cents) | 13.88 | 14.01 | (0.9%) | 13.61 | 13.83 | (1.6%) |
| CASM, excluding fuel and employee profit share (cents)* | 9.29 | 9.32 | (0.3%) | 9.06 | 9.12 | (0.7%) |
| *Refer to reconciliations in the accompanying tables for further information regarding calculations. |
WestJet also declared a 20 per cent increase to its quarterly dividend from $0.10 to $0.12 per common voting share and variable voting share.
WestJet expects continued strong traffic and revenue growth in the first quarter of 2014, and to achieve continued earnings growth for the full-year 2014.
Dividend declaration
On February 3, 2014, WestJet’s Board of Directors declared a cash dividend of $0.12 per common voting share and variable voting share for the first quarter of 2014, to be paid on March 31, 2014, to shareholders of record on March 19, 2014. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.
Copyright Photo: TMK Photography/AirlinersGallery.com. Another view of WestJet’s new Walt Disney World “Magic Plane” at Toronto (Pearson).
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