WestJet reports second quarter results
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WestJet announced second quarter net earnings of USD30.2 million. This compared to USD 11.5 million reported in the second quarter of 2007. Year to date, net earnings in 2008 were USD 82.7 million compared to USD 41.4 million earned in the same six months of 2007.
The airline's second quarter 2007 net earnings were impacted by the one-time non-recurring impairment loss related to costs previously capitalized for the aiRES project. Excluding this impairment, earnings for the quarter were USD33.7 million; this represents a second quarter 2008 earnings decrease of 10.4%. Year-to-date 2008 earnings improved 30.0% when compared to the adjusted USD 63.6 million earned in the first six months of 2007.
The airline's diluted earnings per share (EPS) for the second quarter of 2008 was 23 cents compared to nine cents in the same period last year. Excluding the reservation-system impairment, diluted EPS for the quarter decreased 11.5% from an EPS of 26 cents in 2007. Year to date, diluted EPS was 63 cents compared to 32 cents. Adjusted diluted EPS for the first half of 2007 was 49 cents, representing a 2008 improvement of 28.6%.
The airline reported a second quarter earnings before tax (EBT) margin of 7.1% and an operating margin of 9.1%. Year to date, WestJet's EBT margin was 9.7% and its operating margin was 11.4%.
Sean Durfy, WestJet President and CEO said, "We are very pleased with another quarter of results that will be among the best in North America; we feel confident we can continue to grow profitably and gain further market share domestically, transborder and internationally," "We continued to implement our proven strategies of seasonally adjusting our capacity and carefully selecting destinations and markets that benefit our business and our guests. While we were not immune to the impacts of unprecedented and unrelenting oil prices and the effects of economic uncertainty softening demand, the hard work and dedication of over 7,300 WestJetters delivered financial results that demonstrate the merits of our business strategy. I thank them for continuing to deliver our WestJet experience to more and more guests."
(c) Centre for Asia Pacific Aviation. Date posted: 31-Jul-08
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WestJet reports second quarter results 
