Tag Archives: 7377CT

WestJet’s pilots reject the proposed contract

WestJet (Calgary) has announced that its pilots have voted against a tentative agreement by a margin of 58.7 percent. Turnout was very strong, with 96 per cent of pilots voting.

The current agreement remains in effect until a new agreement is reached. Pilots at WestJet are represented by the WestJet Pilots Association (WJPA), a non-union employee association.

“We are disappointed with the results of the vote,” said Gregg Saretsky, WestJet President and CEO. “Our leadership team and the WJPA will regroup in the coming weeks, focusing on understanding the specific concerns of the pilot group and, just as we’ve always done, work collaboratively to bring forward a new agreement.”

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 737-7CT C-FWAQ (msn 32748) touches down in Las Vegas.

WestJet: AG Slide Show

WestJet launches nonstop seasonal Calgary-Miami flights

WestJet (Calgary) yesterday (October 28) launched new nonstop seasonal service between Calgary and Miami, Florida, home to the largest cruise ship port in the world. The first flight leaves Calgary International Airport at 1:30 p.m. MDT and arrives at Miami International Airport at 8:45 p.m. EDT .

Details of WestJet’s new non-stop seasonal service between Calgary and Miami are:

Flight Departing Arriving Effective
1500 Calgary at 1:30 p.m. Miami at 8:43 p.m. October 28, 2013
1501 Miami at 9:35 a.m. Calgary at 1:45 p.m. October 29, 2013

The launch marks the start of service four times weekly on Mondays, Thursdays, Fridays and Saturdays until December 14, 2013 . Effective December 16, 2013 , the service increases to six times weekly (Monday through Saturday).

Miami International Airport is a major hub of American Airlines, one of WestJet’s airline partners. From Miami , WestJet guests have the opportunity to connect to many different AA destinations throughout the United States , Central and South America. WestJet guests may also access Miami via American Airlines codeshare flights from Toronto and Montreal.

Copyright Photo: Bruce Drum/AirlinersGallery.com.  Boeing 737-7CT WL C-FEWJ (msn 32769) taxies to the gate at Miami International Airport.

WestJet: AG Slide Show

WestJet reports record 1Q net profit of C$91.1 million, will sell 10 Boeing 737-700s

WestJet (Calgary) today announced its first quarter results for 2013. The airline reported record net earnings of $91.1 million, or $0.68 per diluted share, up from the net earnings of $68.3 million, or $0.49 per diluted share reported in the first quarter of 2012. These results mark WestJet’s 32nd consecutive quarter of profitability. Based on the trailing twelve months, the airline achieved a return on invested capital of 14.3 per cent, up from the 13.7 per cent reported in the previous quarter.

“We are very pleased to report our best ever quarterly earnings and for the third consecutive quarter we exceeded our 12 per cent ROIC target by achieving 14.3 per cent,” said WestJet President and CEO Gregg Saretsky. “The excitement is building as we move closer to the launch of WestJet Encore. I want to thank WestJetters for their dedication and tremendous efforts in providing our guests a caring and friendly experience each and every day.”

Operating highlights (stated in Canadian dollars)
Q1 2013 Q1 2012 Change
Net earnings (millions) $91.1 $68.3 33.3%
Diluted earnings per share $0.68 $0.49 38.8%
Total revenues (millions) $967.2 $891.0 8.6%
Operating margin 13.7% 11.9% 1.8 pts
ASMs (available seat miles) (billions) 6.032 5.690 6.0%
RPMs (revenue passenger miles) (billions) 5.088 4.721 7.8%
Load factor 84.3% 83.0% 1.3 pts
Segment guests 4,493,324 4,230,415 6.2%
Yield (revenue per revenue passenger mile) (cents) 19.01 18.87 0.7%
RASM (revenue per available seat mile) (cents) 16.03 15.66 2.4%
CASM (cost per available seat mile) (cents) 13.84 13.80 0.3%
CASM, excluding fuel and employee profit share (cents)* 8.94 8.95 (0.1%)

*Refer to reconciliations in the accompanying tables for further information regarding calculations.

WestJet announced in February the first two new communities WestJet Encore will be servicing. Beginning on June 24, 2013, WestJet Encore will begin daily service from Calgary and Vancouver to Fort St. John, British Columbia, and from Calgary to Nanaimo, British Columbia.

In January 2013, WestJet launched a three-year company-wide business transformation initiative with a goal to reduce annual costs by $100 million by the end of 2015 and to undertake a longer term initiative to ensure WestJet’s unit costs are competitive with low cost North American airlines. This initiative will focus on aircraft and asset utilization, distribution, productivity, and all non-operational expenses.

For the second quarter of 2013, WestJet expects strong traffic growth and earnings among its best ever for a second quarter, notwithstanding an expected moderate decline in its second quarter RASM which will be impacted by the timing of Easter and Passover, the elimination of Thomas Cook capacity purchase commitments, the loss of the one-time benefit from Air Canada’s labour uncertainty in the second quarter of 2012, and accelerating capacity growth fueled by higher utilization and the launch of WestJet Encore.

For the second quarter of 2013, WestJet expects CASM, excluding fuel and employee profit share, to be flat to up one per cent year-over-year. The airline expects fuel costs to range between $0.84 and $0.86 cents per litre for the second quarter of 2013, representing a year-over-year decrease of six to nine per cent.

For the full year 2013, the airline now expects CASM, excluding fuel and employee profit share, to be flat to up one per cent year-over-year primarily as a result of cost reductions achieved and anticipated through its business transformation initiative, but excluding any benefit from the exemption it received yesterday from Transport Canada, to the requirement for one flight attendant for every forty passengers on board.

WestJet announced today it has entered into an agreement with a third party under which WestJet will sell 10 of its oldest Boeing Next-Generation 737-700 aircraft to that party in 2014 and 2015, and concurrently entered an agreement with Boeing to purchase 10 Boeing Next-Generation 737-800 aircraft in 2014 and 2015, effectively reducing the average age of WestJet’s fleet by approximately one year. WestJet has deferred the delivery of five Boeing Next-Generation 737-700 aircraft from 2014 and 2015 to 2016 and 2017. “These agreements are part of our strategy to optimize and modernize our fleet mix, which will improve CASM, while maintaining fleet flexibility going forward,” added Gregg Saretsky.

Dividend declaration

On May 6, 2013, WestJet’s Board of Directors declared a cash dividend of $0.10 per common voting share and variable voting share for the second quarter of 2013, to be paid on June 28, 2013, to shareholders of record on June 12, 2013. 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.

In other news, WestJet confirmed it has received an exemption from Transport Canada to the requirement for one flight attendant for every 40 passengers on board. The exemption, which is effective immediately, allows for one flight attendant for every 50 seats on board the aircraft.

“We are pleased that Transport Canada has granted this exemption,” said Gregg Saretsky, WestJet President and CEO. “One flight attendant for every 50 seats is the accepted international practice and has been in place for decades around the world. “This exemption will place us on a level regulatory playing field with U.S. and international carriers who fly in and out of Canada every day under these rules. Safety is a core value at WestJet and we commend the government for recognizing that there is a consistent level of safety operating under this ratio.”

“WestJet has committed that it will not lay off any flight attendants under this new exemption,” commented Antonio Faiola, WestJet Flight Attendant and Chair of PACT, WestJet’s employee association. “Our history speaks for itself: WestJet has always worked with its employees when our business changes and this is another example of its commitment to its people.”

“We anticipate cost savings once this exemption has been operationalized across our network,” continued Gregg Saretsky. “These savings will allow us to grow our network and continue to provide low fares for the Canadian traveller. We will now work with our operations teams to determine when we can implement these changes which will in turn determine when these savings will be realized.”

On the intent to order 10 new Boeing 737-800s, Boeing issued this statement:

“Boeing is delighted that WestJet has committed to order 10 Next-Generation 737-800s. The commitment, with a current list-price value of $891 million, is a key component of the Calgary-based carrier’s strategy to optimize and modernize its fleet. Boeing looks forward to working with WestJet to finalize the order in the coming days.”

Copyright Photo: Michael B. Ing. Boeing 737-7CT WL C-FWBL (msn 32750) approaches Los Angeles International Airport for landing.

WestJet: AG Slide Show

WestJet arrives in Myrtle Beach, South Carolina

WestJet (Calgary) yesterday (May 2) launched new twice-weekly nonstop service between Toronto (Pearson) and Myrtle Beach, South Carolina. The first flight left Toronto’s Pearson International Airport at 9:30 a.m. EDT.

Details of WestJet’s new nonstop twice-weekly service (Thursdays and Sundays) between Toronto and Myrtle Beach, South Carolina, are as follows:

Flight Departing Arriving Effective
1154 Toronto at 9:30 a.m. Myrtle Beach at 11:35 a.m. May 2, 2013
1155 Myrtle Beach at 12:20 p.m. Toronto at 2:14 p.m. May 2, 2013

Introductory one-way fares starting at:

Departing Arriving Air transportation charges
(ATC)
Taxes, fees
and charges
Total
one-way
price
from
Base fare from Other ATC
Toronto Myrtle
Beach
$89 $7.50 $82.27 $178.77
*CAD

*Some restrictions apply.

Further service expansion began April 29, when WestJet launched new nonstop daily service between Calgary and Dallas-Fort Worth, offering more connectivity than ever to the United States through WestJet’s code-share agreement with American Airlines. Within Canada, WestJet is also increasing the number of flights between Toronto and Vancouver, Edmonton, Calgary, Saskatoon and Regina, and will introduce new nonstop service between Toronto and Fort McMurray. The airline will also increase to two flights daily from one between Calgary and Los Angeles, and to 11 from seven flights weekly between Toronto and Orlando.

Internationally, WestJet will extend service to Aruba; Liberia, Costa Rica; and Trinidad and Tobago on a year-round basis. The airline will also add one extra flight each week between Toronto and Kingston and Montego Bay, Jamaica; Varadero, Cuba; St. Maarten; Puerto Plata, Dominican Republic; and Cancun, Mexico.

Copyright Photo: Bruce Drum. Boeing 737-7CT WL C-FWBL (msn 32750) approaches for landing at Orlando International Airport.

WestJet: AG Slide Show

WestJet arrives in Dallas/Fort Worth today

WestJet (Calgary) today launches new daily nonstop service between Calgary and Dallas/Fort Woth, Texas. The first flight leaves Calgary International Airport at 10:25 a.m. MST .

“Today marks the launch of service to a key destination,” said Chris Avery , WestJet Vice-President, Network Planning, Alliances and Corporate Development. “Dallas-Fort Worth International Airport is the fourth-largest airport in the United States , as well as a major hub for our partner, American. Combined, the two airlines offer three round-trip flights between Calgary and Dallas , and beyond that, the opportunity to connect to 16 additional cities as part of our code-sharing agreement. This additional connectivity, combined with the opportunity to earn rewards on both airlines, is an attractive offer for business travellers in particular.”

The WestJet code is also available on American-operated routes connecting through Dallas-Fort Worth to Albuquerque , N.M., Austin, Texas, Nashville , Tenn., Charlotte, N.C., Fort Lauderdale , Fla., Jacksonville , Fla., Kansas City , Mo., Orlando , Fla., Miami , Fla., New Orleans , La., Oklahoma City , Okla., Raleigh-Durham, N.C., San Antonio , Texas, St. Louis , Mo., Tampa, Fla., and Tulsa , Okla.

Details of WestJet’s new nonstop daily service between Calgary and Dallas-Fort Worth are:

Flight Departing Arriving Effective
1554 Calgary at 10:25 a.m. Dallas-Fort Worth at 2:58 p.m. April 29, 2013
1555 Dallas-Fort Worth at 3:45 p.m. Calgary at 6:29 p.m. April 29, 2013

Copyright Photo: Bruce Drum. American Airlines is WestJet’s new strategic partner and the move to serve AA’s largest hub at DFW makes a lot of business sense. WestJet has also serves AA’s Latin American hub at Miami where Boeing 737-7CT C-GWBF (msn 32757) is pictured taxiing to the runway.

WestJet: AG Slide Show

WestJet and Icelandair launch their new interline agreement

WestJet (Calgary) and Icelandair (Keflavik) have launched a new interline agreement opening up the skies for passengers connecting between the Americas and more than 20 Icelandair destinations throughout Europe .

Passengers can now book a single combined e-ticket for WestJet and Icelandair flights which includes the conveniences of single check-in for all flights and baggage sent through to the final destination.

Earlier this year Icelandair expanded its seasonal service from Toronto to a year-round operation with plans to increase capacity next summer. Icelandair will also resume seasonal service from Halifax with two flights a week starting June 1, 2013.

Icelandair, the national carrier of Iceland since 1937, offers service to Iceland from Boston , New York-JFK, Seattle , Denver and Toronto with seasonal service from Newark , Washington, D.C., Minneapolis-St. Paul, Orlando Sanford , Halifax , and Anchorage (starting May 15 , 2013).

Top Copyright Photo: Bruce Drum. Boeing 737-7CT WL C-FWAF (msn 32747) arrives at Las Vegas.

WestJet: AG Slide Show

Icelandair: AG Slide Show

Bottom Copyright Photo: Keith Burton. Boeing 757-208 WL TF-FIP (msn 30423) completes its final approach into London (Heathrow).

WestJet reduces its carry-on policy to 1 carry-on and 1 personal item

WestJet Airlines (Calgary) has updated its carry-on policy, now reflecting the industry standard. The airline issued this statement

WestJet today announced it is updating the number of carry-on pieces guests are permitted to bring on board to one from two, plus one personal item, effective April 4, 2013.

The carry-on item (eg. a suitcase, backpack or bag) must be no larger than 21 inches by 9 inches by 15 inches and it must fit in the WestJet sizing devices located in airports across our network. If it does not fit, it must be checked at the boarding gate and picked up upon arrival at the baggage carousel.

Personal items include small purses, laptop bags or mobility or child restraint devices. For parents travelling with infants, a diaper bag is permitted over and above the carry-on allowance.

“Updating our baggage allowance has many benefits,” said Bob Cummings, WestJet Executive Vice-President, Sales, Marketing and Guest Experience. “Fewer carry-on items will mean more room for everyone’s baggage, and faster and more efficient boarding. This, in turn, helps us stay on time. It will also create a more consistent experience for guests travelling between WestJet and WestJet Encore beginning later this spring, as well as for guests connecting to and from flights offered by our codeshare and interline partners, most of whom have already adopted this standard.”

Copyright Photo: Michael B. Ing.

WestJet: AG Slide Show

 

WestJet reports 4Q net earnings of C$60.9 million and full year net earnings of C$242.4 million

WestJet Airlines (Calgary) has announced its fourth quarter and year-end results for 2012. The airline reported fourth quarter net earnings of $60.9 million, or $0.46 per share and full-year net earnings of $242.4 million, or $1.78 per share; up significantly from the net earnings of $148.7 million, or $1.06 per share, reported for 2011. These financial results mark WestJet’s 31st consecutive quarter of profitability. Based on the trailing twelve months, the airline achieved a return on invested capital of 13.7 per cent, up from the 12.7 per cent reported last quarter.

“We are very pleased with the positive momentum generated in 2012 that culminated with us reporting record annual earnings, record high load factors and for the second consecutive quarter, we surpassed our return on invested capital target of 12 per cent by achieving 13.7 per cent for the year,” said WestJet President and CEO Gregg Saretsky. “Fundamentally our momentum is traced to the commitment and dedication of our over 9,000 WestJetters, and I am very proud of the positive and caring attitude they exemplify each and every day.”

Operating highlights (stated in Canadian dollars)

Q4 2012 Q4 2011 Change Full-Year
2012
Full-Year
2011
Change
Net earnings (millions) $60.9 $35.6 71.3% $242.4 $148.7 63.0%
Diluted earnings per share $0.46 $0.26 76.9% $1.78 $1.06 67.9%
Total revenues (millions) $860.6 $781.5 10.1% $3,427.4 $3,071.5 11.6%
Operating margin 10.6% 7.6% 3.0 pts 11.0% 8.4% 2.6 pts
ASMs (available seat miles) (billions) 5.487 5.329 3.0% 22.064 21.186 4.1%
RPMs (revenue passenger miles) (billions) 4.493 4.194 7.1% 18.263 16.891 8.1%
Load factor 81.9% 78.7% 3.2 pts 82.8% 79.7% 3.1 pts
Segment Guests 4,314,024 3,996,593 7.9% 17,423,352 16,040,682 8.6%
Yield (revenue per revenue passenger
mile) (cents)
19.16 18.64 2.8% 18.77 18.18 3.2%
RASM (revenue per available seat mile)
(cents)
15.68 14.67 6.9% 15.53 14.50 7.1%
CASM (cost per available seat mile)
(cents)
14.01 13.55 3.4% 13.83 13.29 4.1%
CASM, excluding fuel and employee profit
share (cents)*
9.32 9.03 3.2% 9.12 8.85 3.1%

*Refer to reconciliations in the accompanying tables for further information regarding calculations.

WestJet also announced its intention, upon the expiry of the 12-month period of its 2012 normal course issuer bid, to make an application to the Toronto Stock Exchange to initiate a further normal course issuer bid for up to 5 per cent of the currently issued and outstanding shares. The airline also declared an increase to its quarterly dividend from $0.08 to $0.10. “Continuing the share buy-back program and increasing the dividend signals our confidence in the strength of the business and our commitment to return value to shareholders,” added Gregg Saretsky.

Throughout 2012, WestJet was able to expand its virtual network with the implementation of 13 new interline partnerships, and by evolving four existing interline partnerships (Delta Air Lines, Korean Air, China Eastern Airlines and British Airways) into code-share relationships, bringing the total number of airline partnerships to thirty worldwide.

WestJet expects moderate growth in RASM and margin expansion in the first quarter of 2013, notwithstanding the difficult prior year comparisons and increases in system wide capacity. For the full year 2013, the airline expects CASM, excluding fuel and employee profit share, to increase between two to three percent year-over-year. For the first quarter of 2013, WestJet expects fuel costs to range between $0.94 and $0.96 per litre.

Dividend declaration

On February 5, 2013 WestJet’s Board of Directors declared a cash dividend of $0.10 per common voting share and variable voting share for the first quarter of 2013, to be paid on March 28, 2013, to shareholders of record on March 13, 2013. 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: Ton Jochems. Boeing 737-7CT C-FKIW (msn 37955) arrives at Las Vegas.

WestJet: AG Slide Show

WestJet sets a new one-day traffic record

WestJet Airlines (Calgary) announced it was planning to fly 57,464 passengers yesterday (December 21), setting a new single-day record for guests travelling with the airline.

Across the airline’s network, WestJetters have been getting into the holiday spirit by volunteering their time with its WestJet Cares for Kids partner charities. At this busy time of year, WestJetters who work in the airline’s Calgary campus and in offices across the country also offer their time to help in airports, helping guests use kiosks and agents drop off and sort baggage.

Earlier this month, the airline unveiled its WestJet Christmas Flash mob where WestJet employees turned the D-wing of Calgary International Airport into Santa’s workshop, spreading Christmas cheer just before a sold-out red-eye flight to Toronto earlier this month.

Video:

Copyright Photo: Michael B. Ing. Boeing 737-7CT C-FWAO (msn 33657) prepares to land at Los Angeles International Airport.

WestJet: AG Slide Show

WestJet adds more flights for 100th Grey Cup in Toronto

WestJet Airlines (Calgary) has announced it will add additional flights between Calgary and Toronto (Pearson) to accommodate demand from football fans to huddle up for centennial Grey Cup celebrations in Toronto this weekend. The Calgary Stampeders will play the Toronto Argonauts for CFL supremacy at Rogers Centre on Sunday, November 25 .

WestJet will add one flight on Friday from Calgary to Toronto and one flight on Monday from Toronto to Calgary , plus return flights in the opposite direction each day.

“The Grey Cup is Canada’s oldest professional sports trophy and a truly Canadian celebration,” said Bob Cummings , WestJet’s Executive Vice-President of Sales, Marketing and Guest Experience. “This year, as we celebrate the 100th Grey Cup Championship in Toronto , we’re calling the signals. Flights between Calgary and Toronto are almost completely sold out, so we’re changing the play. In support of this iconic Canadian tradition, we are adding two more flights to help get more fans over their goal line.”

Copyright Photo: Keith Burton. Boeing 737-7CT C-FMWJ (msn 32771) prepares to touch down at Toronto (Pearson).

WestJet: