WestJet operating profit declines in 2016, growth anticipated in 2017

WestJet revenue up 6% - financial highlights:

• Three months ended 31-Dec-2016:
• • Revenue: CAD1018 million (USD762.3 million), +6.2% year-on-year;
  • • Ancillary: CAD95.0 million (USD71.2 million), +19.0%;
  • Operating costs: CAD932.5 million (USD698.4 million), +10.2%;
  • • Fuel: CAD210.5 million (USD157.7 million), +15.5%;
    • Labour: CAD204.7 million (USD153.3 million), +3.2%;
  • Operating profit: CAD85.3 million (USD63.9 million), -24.3%;
  • Net profit: CAD55.2 million (USD41.3 million), -13.0%;
  • Passengers: 5.4 million, +10.9%;
  • Passenger load factor: 80.2%, +1.8 ppt;
  • Yield: CAD 17.50 cents (USD 13.1 cents), -6.7%;
  • Revenue per ASM: CAD 14.03 cents (USD 10.5 cents), -4.5%;
  • Cost per ASM: CAD 12.86 cents (USD 9.6 cents), -0.8%;
  • Cost per ASM excl fuel and employee profit sharing: CAD 9.87 cents (USD 7.4 cents), -1.7%;
  • Average stage length: 895 miles, +0.9%;
• 12 months ended 31-Dec-2016:
• • Revenue: CAD4123 million (USD3113 million), +2.3%;
  • • Ancillary: CAD389.9 million (USD294.4 million), +15.9%;
  • Operating costs: CAD3683 million (USD2781 million), +6.5%;
  • • Labour: CAD854.1 million (USD664.9 million), +6.5%;
    • Fuel: CAD765.9 million (USD578.3 million), -6.0%;
  • Operating profit: CAD440.1 million (USD332.3 million), -22.8%;
  • Net profit: CAD295.5 million (USD223.1 million), -19.6%;
  • Passengers: 22.0 million, +8.2%;
  • Passenger load factor: 81.8%, +1.8 ppt;
  • Yield: CAD 17.20 cents (USD 13.0 cents), -8.1%;
  • Revenue per ASM: CAD 14.07 cents (USD 10.6 cents), -6.1%;
  • Cost per ASM: CAD 12.57 cents (USD 9.5 cents), -2.3%;
  • Cost per ASM excl fuel and employee profit share: CAD 9.75 (USD 7.4 cents), +3.1%;
  • Average stage length: 911 miles, +0.1%;
  • Total assets: CAD6164 million (USD4655 million);
  • Cash and cash equivalents: CAD1521 million (USD1148 million);
  • Total liabilities: CAD4104 million (USD3099 million). [more - original PR]

*Based on the average conversion rate at CAD1 = USD0.755088 for 2016
*Based on the average conversion rate at CAD1 = USD0.748986 for 4Q2016

WestJet: "For the first quarter of 2017, we expect system-wide capacity to grow between 6.0 and 6.5 per cent year over year, and domestic capacity to grow between 8.0 and 8.5 per cent year over year. In terms of the full-year 2017, we anticipate system-wide capacity growth between 3.5 and 5.5 per cent year over year and domestic capacity growth between 7.5 and 8.5 per cent year over year. A majority of the domestic capacity growth is attributable to WestJet Encore and our expanding charter business. For the first quarter of 2017, we expect strong traffic and revenue growth to continue and anticipate a return to positive year over year RASM growth of up 1.0 to 3.0 per cent." Source: Company statement, 07-Feb-2017.