26th consecutive quarterly profit
Nov 10, 2011, 10:11 pm
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26th consecutive quarterly profit
http://atwonline.com/airline-finance...-quarters-1110
WestJet (WS) reported a C$39.3 million ($38.8 million) third-quarter net profit, down 10.4% from net income of C$43.8 million in the prior-year period. The Canadian low-cost carrier's 26th straight quarterly profit was a "solid" result, particularly given "significantly higher fuel costs," president and CEO Gregg Saretsky said.
He added, "The broader economy continues to experience a great deal of volatility and consumer confidence measures echo that uncertainty. However, we are not seeing this impact reflected in our forward bookings in any significant manner. We are optimistic that demand for air travel will remain healthy."
The Calgary-based airline boosted third-quarter revenue 13.3% year-over-year to C$775.3 million while expenses heightened 16.9% to C$709.2 million. Aircraft fuel costs jumped 35.1% to C$230.8 million. Operating profit was C$66 million, down 14.4%.
Third-quarter traffic rose 7.7% year-over-year to 4.32 billion RPMs on a 7.1% lift in capacity to 5.4 billion ASMs, producing a load factor of 80.1%, up 0.5 point. Yield increased 5.3% to C$0.18.
The company's board of directors declared a cash dividend of C$0.05 per common voting share and variable voting share for the fourth quarter to be paid Dec. 30 to shareholders of record Dec. 14.WS is one of the few carriers in the world to reward shareholders in this way.
In an interview late last year with ATW, Saretsky said, "We've generated, year after year, a very strong cash flow. So at some point you say, ‘How do I use that cash?’ ... We have shareholders who actually believe in our business model and at some point you want to reward them, and that's the dividend" (ATW, Jan. 1).
WestJet (WS) reported a C$39.3 million ($38.8 million) third-quarter net profit, down 10.4% from net income of C$43.8 million in the prior-year period. The Canadian low-cost carrier's 26th straight quarterly profit was a "solid" result, particularly given "significantly higher fuel costs," president and CEO Gregg Saretsky said.
He added, "The broader economy continues to experience a great deal of volatility and consumer confidence measures echo that uncertainty. However, we are not seeing this impact reflected in our forward bookings in any significant manner. We are optimistic that demand for air travel will remain healthy."
The Calgary-based airline boosted third-quarter revenue 13.3% year-over-year to C$775.3 million while expenses heightened 16.9% to C$709.2 million. Aircraft fuel costs jumped 35.1% to C$230.8 million. Operating profit was C$66 million, down 14.4%.
Third-quarter traffic rose 7.7% year-over-year to 4.32 billion RPMs on a 7.1% lift in capacity to 5.4 billion ASMs, producing a load factor of 80.1%, up 0.5 point. Yield increased 5.3% to C$0.18.
The company's board of directors declared a cash dividend of C$0.05 per common voting share and variable voting share for the fourth quarter to be paid Dec. 30 to shareholders of record Dec. 14.WS is one of the few carriers in the world to reward shareholders in this way.
In an interview late last year with ATW, Saretsky said, "We've generated, year after year, a very strong cash flow. So at some point you say, ‘How do I use that cash?’ ... We have shareholders who actually believe in our business model and at some point you want to reward them, and that's the dividend" (ATW, Jan. 1).
