WestJet profit down 40% but revenue steady in 2Q2016

WestJet revenue up 1% - financial highlights for 2Q2016 and 1H2016:

• Three months ended 30-Jun-2016:
• • Revenue: CAD949.3 million (USD736.4 million), +0.8%;
  • • Ancillary: CAD95.2 million (USD73.9 million), +14.9%;
  • Operating costs: CAD887.9 million (USD688.8 million), +5.5%;
  • • Labour: CAD218.3 million (USD169.3 million), +7.8%;
    • Fuel: CAD182.6 million (USD141.6 million), -15.1%;
  • Operating profit: CAD61.4 million (USD47.7 million), -38.8%;
  • Net profit: CAD36.7 million (USD28.4 million), -40.5%;
  • Passenger numbers: 5.3 million, +7.0%;
  • Load factor: 80.8%, +2.7 ppts;
  • Yield: CAD 16.51 cents (USD 12.8 cents), -8.9%;
  • Revenue per ASM: CAD 13.34 cents (USD 10.3 cents), -5.8%;
  • Cost per ASM: CAD 12.48 cents (USD 9.7 cents), -1.3%;
  • Cost per ASM excl fuel and employee profit share: CAD 9.93 (USD 7.7 cents), +7.0%;
  • Average stage length: 906 miles, -0.2%;
• Six months ended 30-Jun-2016:
• • Revenue: CAD1981 million (USD1490 million), -2.2%;
  • • Ancillary: CAD190.6 million (USD143.4 million), +14.9%;
  • Operating costs: CAD1796 million (USD1351 million), +3.9%;
  • • Labour: CAD440.6 million (USD331.4 million), +8.6%;
    • Fuel: CAD349.0 million (USD262.5 million), -18.0%;
  • Operating profit: CAD184.7 million (USD138.9 million), -37.9%;
  • Net profit: CAD124.3 million (USD93.5 million), -38.6%;
  • Passenger numbers: 10.6 million, +7.7%;
  • Load factor: 81.5%, +1.6 ppt;
  • Yield: CAD 16.88 cents (USD12.7 cents), -10.3%;
  • Revenue per ASM: CAD 13.75 cents (USD10.3 cents), -8.5%;
  • Cost per ASM: CAD 12.46 cents (USD 9.4 cents), -2.9%;
  • Cost per ASM excl fuel and employee profit share: CAD 9.89 cents (USD 7.4 cents), +7.2%;
  • Average stage length: 922 miles, -1.8%;
  • Total assets: CAD5933 million (USD4463 million);
  • Cash and cash equivalents: CAD1698 million (USD1278 million);
  • Total liabilities: CAD3962 million (USD2981 million). [more - original PR]

*Based on the average conversion rate at CAD1 = USD0.775732 for 2Q2016
*Based on the average conversion rate at CAD1 = USD0.752254 for 1H2016

WestJet: "Despite the continuing economic weakness in Alberta, I am very pleased with the positive momentum we are seeing in our business including strengthening topline revenue growth. Our fundamentals remain strong, as highlighted by our recent US$400 million investment grade unsecured notes offering, and we are confident that the strategic initiatives we are pursuing position us for continued profitable growth," Gregg Saretsky, President and CEO. Source: Company statement, 26-Jul-2016.