Westjet announces fourth quarter results
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WestJet announced (11-Feb-09) fourth quarter and year-end financial results for 2008. The airline reported fourth quarter net earnings of CAD40.8 million, or 32 cents per diluted share, and full-yearnet earnings CAD178.1 million, or CAD1.37 per diluted share.
WestJet President and CEO, Sean Durfy said, "We are very pleased with our quarterly results that cap off a financially successful year. This was a challenging time for all businesses. The strain of economic uncertainty, fluctuations in oil prices and financial turmoil continue to impact all industries. While the unpredictable nature of 2008 challenged our airline, our continued ability to deliver on our business strategy, conservative approach to maintaining a healthy balance sheet and our team of caring and dedicated WestJetters allowed us to once again be a top performer in the industry worldwide."
WestJet reported a fourth quarter earnings before tax margin of 9.5%. For the full-year 2008, the airline had an EBT margin of 10.0% and an operating margin of 11.5%.
Sean Durfy continued, "We are pleased to see RASM increase for the year given a 17% increase in revenue passenger miles. Due to a general weakening of economic conditions that were broadly felt across all industries in the latter half of the year, we did experience a slight decline in RASM in the fourth quarter."
CASM, excluding fuel and employee profit share, declined for the
full-year 2008 despite an increase in the quarter. The increase in fourth quarter CASM, excluding fuel and profit share, was impacted by weather-related expenses associated with de-icing and re-accommodating guests.
WestJet plans to continue its growth in 2009. Aircraft delivery delays, resulting from last year's Boeing strike, have slowed the airline's ASM growth expectations to between 6 and 7% in the first quarter of 2009, and approximately 5% for the full year.
(c) Centre for Asia Pacific Aviation. Date posted: 12-Feb-09
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Westjet announces fourth quarter results 
