WestJet reports record third quarter net earnings of $138.4 million, up 19 percent

WestJet's first Boeing 737-8 MAX 8

WestJet on October 31, 2017 announced its third quarter results for 2017, with record net earnings of $138.4 million, or $1.18 per fully diluted share, as compared with the net earnings of $116.0 million, or $0.97 per fully diluted share reported in the third quarter of 2016, up 19.4 per cent and 21.6 per cent, respectively. WestJet achieved its 50th consecutive quarter of profitability and flew an all-time quarterly record of 6.5 million guests. Based on the trailing twelve months, the airline achieved a return on invested capital of 10.2 per cent, up compared to the 9.8 per cent reported in the previous quarter.

“Today we reported our 50th consecutive profitable quarter, which included record earnings, margin expansion, positive year over year RASM growth, and improved return on invested capital, as we achieved the highest ever quarterly load factor in our 21-year history and flew an all-time quarterly record number of guests. Our business fundamentals continue to strengthen, which combined with new strategic initiatives, including the launching of Swoop in the summer of 2018 and Boeing Dreamliner service starting in 2019, gives us great confidence in our ability to deliver sustainable profitable growth and earnings expansion,” said WestJet President and CEO Gregg Saretsky. “I want to thank our more than 13,000 WestJetters for their dedication and energy in delivering our award-winning brand of friendly caring service, and I especially look forward to celebrating our success at the November profit share event.”

Operating highlights (stated in Canadian dollars)

Q3 2017 Q3 2016 Change Year-to-date 2017 Year-to-date 2016 Change
Net earnings (millions) $138.4 $116.0 19.4% $235.1 $240.3 (2.1%)
Diluted earnings per share $1.18 $0.97 21.6% $2.00 $1.98 1.0%
Total revenue (millions) $1,215.6 $1,124.3 8.1% $3,384.9 $3,105.1 9.0%
Operating margin 16.6% 15.1% 1.5 pts 10.7% 11.4% (0.7 pts)
ASMs (available seat miles) (billions) 8.077 7.635 5.8% 23.339 22.045 5.9%
RPMs (revenue passenger miles) (billions) 6.922 6.414 7.9% 19.575 18.152 7.8%
Load factor 85.7% 84.0% 1.7 pts 83.9% 82.3% 1.6 pts
Segment guests 6,530,873 5,900,967 10.7% 18,127,408 16,527,411 9.7%
Yield (revenue per revenue passenger mile) (cents) 17.56 17.53 0.2% 17.29 17.11 1.1%
RASM (revenue per available seat mile) (cents) 15.05 14.73 2.2% 14.50 14.09 2.9%
CASM (cost per available seat mile) (cents) 12.55 12.50 0.4% 12.96 12.48 3.8%
Fuel costs per litre (cents) 62 57 8.8% 63 53 18.9%
CASM, excluding fuel and employee profit share (cents)* 9.26 9.38 (1.3%) 9.78 9.72 0.6%
 *Refer to reconciliations in the accompanying tables for further information regarding calculations.

Copyright Photo: WestJet Airlines Boeing 737-8 MAX 8 C-FRAX (msn 60510) YYZ (TMK Photography). Image: 939575.

 

 

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