Wings Magazine

News
WestJet reports best quarter ever

May 7, 2013, Calgary – WestJet is reporting its "best ever" quarterly earnings, while also announcing deal to sell 10 of its oldest jets and replace them with 10 newer ones.


May 7, 2013
By The Canadian Press

May 7, 2013, Calgary – WestJet is reporting its "best ever"
quarterly earnings, while also announcing deal to sell 10 of its
oldest jets and replace them with 10 newer ones.

The Calgary-based airline says its first-quarter net income rose
33.3 per cent to $91.1 million or 68 cents per share. That compared
with net earnings of $68.3 million or 49 cents per share in the same
2012 period.

Total revenue was up 8.6 per cent at $967.2 million from $891
million a year ago.

These results mark WestJet's 32nd consecutive quarter of
profitability.

Advertisment

Based on the trailing 12 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,'' WestJet president and CEO
Gregg Saretsky said in releasing the company's earnings report
Tuesday.

WestJet did not identify the "third party'' buyer of its oldest
Boeing Next-Generation 737-700 aircraft, but said the sales would be
made in 2014 and 2015.

Meanwhile, it has an agreement with Boeing to purchase 10
Next-Generation 737-800 aircraft, also in 2014 and 2015. That will
effectively reducing the average age of WestJet's fleet by about a
year, the airline said.

WestJet has also 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 (cost per available
seat mile), while maintaining fleet flexibility going forward,''
Saretsky said.