http://www.cbc.ca/stories/2003/12/09/westjet_031209

Looks like the load went up which has been a challenge for WS recently. I should think yields were a challenge with all the rock bottom discounting on trans-cons.

The load factor year over year went up because last November was a particularily poor month for Westjet.

When one graphs the RPM and ASM, the interesting thing is how volitile their RPM production has become as each month passes. Two years ago there was a steady climb with a few minor dips each month. Now the swing between the peaks in August compared to the dip in November is very great. Two years ago November was 75% of August. Now November is about 65% of August.

Edit to correct:
OOPS rechecking my figures this Nov/Aug is not so bad. Only a few points lower at 73%


[This message has been edited by exAC (edited Dec 09, 2003).]

WestJet traffic surges in Nov.

So did it's debt.

WS has been leaving copies of it's quarterly results at the check-in counters lately. Looking through the fine print, WS had long-term debt of $36,554,000 on Sept. 30, 2002. On Sept. 30, 2003 long-term debt was $528,734,000.
Average payments on long-term debt are about $50,000,000/yr for each of the next 5 years.

Their CCAA day will come!!!!

:

Parnel:

No way!!!

They are the future of the airline industry!
They're cheap! And funny! And their debt has... oh.

If Air Canada's debt had ballooned sixteen-fold, keithguy, the national media would be all over it. Strange how they aren't on WS.

Simon

QUOTE]Originally posted by parnel:

Their CCAA day will come!!!![/QUOTE]

No doubt about it, they are done like dinner!

- 27 consecutive quarters of profitability
- Positive cash flow
- Net earnings up 39.8%
- 15.9% reduction in CASM
- youngest fleet in Canada
- new equipment coming on line monthly

Sure "LONG TERM DEBT" went up. It's not like they borrowed the money to run the competition out of business and have nothing to show for it, except the debt! They have acquired modern fuel efficient equipment that are lowering their operating costs. You might not like WJ, but their balance sheet is hardly a mess, especially considering the capital intensive nature of the airline industry.

AC load factor increases in Nov

http://makeashorterlink.com/?E278166C6

No doubt about it, they are done like dinner!

- 27 consecutive quarters of profitability
- Positive cash flow
- Net earnings up 39.8%
- 15.9% reduction in CASM
- youngest fleet in Canada
- new equipment coming on line monthly

Sure "LONG TERM DEBT" went up. It's not like they borrowed the money to run the competition out of business and have nothing to show for it, except the debt! They have acquired modern fuel efficient equipment that are lowering their operating costs. You might not like WJ, but their balance sheet is hardly a mess, especially considering the capital intensive nature of the airline industry.

[/QUOTE]


Hey, I'm a capitalist and I like companies to make money.........but the LTD has to be repaid and I remember when AC said they had the youngest fleet in the world,etc. Airlines are a cash flow business with lots of fixed overheads;WS is no different than AC was and is now growing its debt hoping the growth in traffic continues. What if AC gets their **** together and takes them on when they become vulnerable to say higher interst rates or some such unforeseen change in the business plan.Remember Canada 3000.....flying high one minute and dead the next.

Simon, but mighty Air Canada's debt didn't just ballon sixteen-fold, it went up so high that they filed for CCAA protection. AC can't pay its bills.

When smaller airlines like Canada 3000 could not pay its bills, the media was all over it.

"The best laid plans of mice and men". Does anybody remember Peoples express, the darling of the industry?

Does anyone remember Southwest Airlines, also a darling of the industry? It's a shame what happened to them

WS's interest coverage for 1st 3 quarters of 2003 is 8.3x now, down from 24+ x for the same period last year (calculated as net profits from operations + amortization / gross interest expense - if you want to be aggressive and used net interest, it's just 9.3x - which is what WN's coverage was for the same period, JetBlue's is about 8.0x but there's an interest item I am uncertain about). Financial wizards would argue that WS was underlevered in 2002 as far as obtaining optimal return on equity.

For 2003 QIII, the ratios are 10 / 11.6 x so WS is actually doing better in the latest reporting period. Southwest's net coverage is 13.4 for this period. JetBlue's is 8.6x

[This message has been edited by terenz (edited Dec 11, 2003).]

For the first 9 months of this year, WS generated $130mm in cash from operations. Tha's enough to pay off 2.6 years of l-t debt ccordng to your schedule, 2.2 years after interest payments. If WS continues to generate, say, $125mm in cash after intrest per year and doesn't add any newLT debt, it could retire it's debt in 4 years.

[This message has been edited by terenz (edited Dec 11, 2003).]