WestJet reports double-digit profit growth in 2Q2012

WestJet revenue up 9% – financial highlights:

• Three months ended 30-Jun-2012:
  • Revenue: CAD809.3 million (UAD801.4 million), +9.0% year-on-year;
    • Ancillary: CAD33.3 million (USD33.0 million), +8.5%;
  • Costs: CAD735.8 million (USD731.6 million), +6.9%;
    • Fuel: CAD242.7 million (USD240.3 million), +5.2%;
  • Operating profit: CAD70.5 million (USD69.8 million), +37.3%;
  • Net profit: CAD42.5 million (USD42.1 million), +65.9%;
  • Passenger numbers: 4.3 million, +8.3%;
  • Load factor: 81.6%, +3.5 ppts;
  • Yield: CAD 18.41 cents (USD 18.23 cents), +1.5%;
  • Revenue per ASM: CAD 15.02 cents (USD 14.88 cents), +6.0%;
  • Cost per ASM: CAD 13.71 cents (USD13.58 cents), +3.9%;
  • Cost per ASM excl fuel and employee profit share: CAD 9.12 cents (USD 9.03 cents), +4.8%;
  • Average stage length: 970 miles, -0.9%;
• Six months ended 30-Jun-2012:
  • Revenue: CAD1700 million (USD1684 million), +12.2%;
    • Ancillary: CAD68.8 million (USD68.1 million), +14.1%;
  • Costs: CAD1524 million (USD1509 million), +10.2%;
    • Fuel: CAD504.7 million (USD499.8 million), +12.3%;
  • Operating profit: CAD176.1 million (USD174.4 million), +34.3%;
  • Net profit: CAD110.8 million (USD109.7 million), +50.0%;
  • Passenger numbers: 8.5 million, +8.4%;
  • Load factor: 82.3%, +2.2 ppts;
  • Yield: CAD 18.65 cents (USD 18.47 cents), +3.2%;
  • Revenue per ASM: CAD 15.35 cents (USD15.20 cents), +6.1%;
  • Cost per ASM: CAD 13.76 cents (USD13.63 cents), +4.1%;
  • Cost per ASM excl fuel and employee profit share: CAD 9.03 cents (USD 8.94 cents), +2.5%;
  • Total assets: CAD3585 million (USD3551 million), +3.2% when compared to period ended 31-Dec-2011;
  • Cash and cash equivalents: CAD1264 million (USD1252 million), +1.7% when compared to period ended 31-Dec-2011;
  • Total liabilities: CAD2185 million (USD2164 million), +3.9% when compared to period ended 31-Dec-2011;
• 3Q2012 forecast:
  • Revenue per ASM: moderately stronger growth than in 1H2012;
  • Fuel cost per litre: CAD0.90 (USD0.89) to CAD0.92 (USD0.91);
  • Cost per ASM excl fuel and profit share: In line with increase in 2Q2012;
  • System capacity: +2.0% to +3.0%;
    • Domestic: -1.0% to -2.0%;
  • Capital expenditure: CAD25 million (USD24.8 million) to CAD30 million (USD29.7 million0;
• FY2012 forecast:
  • Cost per ASM excl fuel and profit share: +3.0% to +3.5%;
  • System capacity: +3.5% to +4.0%;
    • Domestic: Flat to -1.0%;
  • Capital expenditure: CAD270 million (USD267.4 million) to CAD280 million (USD277.3 million). [more – original PR]

*Based on the average conversion rate at USD1 = CAD1.0098 for the period

WestJet: “Interest and enthusiasm are growing around our new regional airline and we continue to make strides towards a planned launch in the second half of 2013. We are extremely pleased with our financial and operational performance in the first half of 2012 and remain confident in our ability to continue to achieve operating margin expansion in the second half of 2012.” Source: Company statement, 01-Aug-2012.

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