WestJet showing soft results !
Feb 3, 2016, 6:36 am
#1
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WestJet showing soft results !
Snip : Expecting the Alberta and Prairie markets to be soft all year, the airline is shifting capacity starting in mid-February to stronger markets in B.C., Ontario and Atlantic Canada.
Despite the economic weakness in its core market, Saretsky said the fundamentals of its business are strong.
"If the rest of Canada starts to catch the cold from Alberta we'll clearly have to revisit our capacity plan, but from where we sit today and the regional strengths we see we think we're in relatively good shape."
WestJet posted record results in 2015 despite a 30 per cent drop in fourth-quarter profits to $63.4 million on a 3.6 per cent decrease in revenues to $958.7 million.
For the full year, it earned $367.5 million on $4.03 billion of revenues, up 29 per cent from $284 million on $3.98 billion of revenues in 2014.
It was helped by a 55 per cent increase to $336.3 million in ancillary revenues, mainly from the addition of first checked bag fees for economy fare passengers and a 25 per cent drop in fuel costs.
On the Toronto Stock Exchange, WestJet shares closed down $2.07, or 11.07 per cent, at $16.63.
http://www.calgaryherald.com/busines...015/story.html
Despite the economic weakness in its core market, Saretsky said the fundamentals of its business are strong.
"If the rest of Canada starts to catch the cold from Alberta we'll clearly have to revisit our capacity plan, but from where we sit today and the regional strengths we see we think we're in relatively good shape."
WestJet posted record results in 2015 despite a 30 per cent drop in fourth-quarter profits to $63.4 million on a 3.6 per cent decrease in revenues to $958.7 million.
For the full year, it earned $367.5 million on $4.03 billion of revenues, up 29 per cent from $284 million on $3.98 billion of revenues in 2014.
It was helped by a 55 per cent increase to $336.3 million in ancillary revenues, mainly from the addition of first checked bag fees for economy fare passengers and a 25 per cent drop in fuel costs.
On the Toronto Stock Exchange, WestJet shares closed down $2.07, or 11.07 per cent, at $16.63.
http://www.calgaryherald.com/busines...015/story.html
Feb 3, 2016, 9:33 pm
#2
Join Date: Dec 2008
Posts: 797
A little perspective on 4Q numbers:
WJ produced an operating profit of $99m after interest payments, double digit operating margins, a BELF of 70.2%, a casm of 13.16 cents including interest with an asl of 877 miles, down from 925 miles last year, and 580 miles shorter than their largest competitor.
It might be prudent to wait to see what the competition managed to do in the same quarter when they get around to releasing their numbers in a couple of weeks time before anyone declares a "victory" or a "defeat".
It may very well get ugly, but I'd far rather be going into this fertilizer storm with WJ's low cost network metrics than anyone else's in Canada.
When it is time to duck and dive, unit costs are king.
WJ produced an operating profit of $99m after interest payments, double digit operating margins, a BELF of 70.2%, a casm of 13.16 cents including interest with an asl of 877 miles, down from 925 miles last year, and 580 miles shorter than their largest competitor.
It might be prudent to wait to see what the competition managed to do in the same quarter when they get around to releasing their numbers in a couple of weeks time before anyone declares a "victory" or a "defeat".
It may very well get ugly, but I'd far rather be going into this fertilizer storm with WJ's low cost network metrics than anyone else's in Canada.
When it is time to duck and dive, unit costs are king.