Tuesday, 5 February 2019

WestJet's earning fall by 67.2%

787 Dreamliner                            Photo WestJet
One of North America's leading airlines, WestJet from Canada has announced its fourth quarter and year end results for 2018 today which show the carrier reported full-year net earnings of $91.5 million.

That compares with net earnings of $279.1 million for 2017, down just over 67%.  In the fourth quarter of 2018 the airline achieved net earnings of $29.2 million, down from last years net earnings of $47.8 million.  "In 2018 we executed several significant milestones on our path to becoming a high-value global network airline," said Ed Sims, WestJet President and CEO. "As we enter 2019, we continue to build momentum and are well-positioned to deliver on our strategic initiatives and expand margins. I would like to thank every WestJetter for their hard work through an especially busy holiday season culminating in our WestJet mainline business achieving the highest completion rate in North America in December, as measured by FlightStats."

Operating highlights (stated in Canadian dollars)

Q4 2018
Q4 2017
Change
Full year 
2018
Full year 
2017
Change
Net earnings (millions)
$29.2
$47.8
(39.0%)
$91.5
$279.1
(67.2%)
Diluted earnings per share
$0.26
$0.41
(36.6%)
$0.80
$2.38
(66.4%)
Total revenue (millions)
$1,193.3
$1,119.1
6.6%
$4,733.5
$4,506.7
5.0%
Operating margin
4.1%
6.9%
(2.8 pts)
3.3%
9.6%
(6.3 pts)
ASMs (available seat miles) (billions)
8.109
7.659
5.9%
32.939
30.998
6.3%
RPMs (revenue passenger miles) (billions)
6.615
6.329
4.5%
27.587
25.904
6.5%
Load factor
81.6%
82.6%
(1.0 pts)
83.8%
83.6%
0.2 pts
Segment guests
6,185,541
6,010,069
2.9%
25,491,290
24,137,477
5.6%
Yield (revenue per revenue passenger mile) (cents)
18.04
17.68
(2.0%)
17.16
17.40
(1.4%)
RASM (revenue per available seat mile) (cents)
14.72
14.61
0.7%
14.37
14.54
(1.2%)
CASM (cost per available seat mile) (cents)
14.11
13.61
3.7%
13.90
13.14
5.8%
Fuel costs per litre (cents)
83
69
20.3%
81
64
26.6%
CASM, excluding fuel and employee profit share (cents)*
10.29
10.26
0.3%
10.11
9.93
1.8%



*Refer to reconciliations in the accompanying tables for further information regarding calculations.


Consolidated Statement of Earnings(Stated in thousands of Canadian dollars, except per share amounts)
(Unaudited)



Three months ended
December 31
Twelve months ended
December 31

2018
2017(i)
2018
2017(i)





Revenue:




Guest
1,119,682
1,046,545
4,483,529
4,238,926
Other
73,581
72,534
249,933
267,729

1,193,263
1,119,079
4,733,462
4,506,655
Operating expenses:




Aircraft fuel
304,944
251,619
1,231,632
950,043
Salaries and benefits
246,864
244,423
999,381
935,545
Rates and fees
160,740
156,214
691,293
644,763
Sales and marketing
114,783
102,331
440,292
393,582
Depreciation and amortization
108,766
105,537
429,906
403,021
Maintenance
69,314
42,440
232,053
203,227
Aircraft leasing
32,718
40,925
139,703
165,902
Other
101,541
94,061
398,038
331,014
Employee profit share
4,534
4,401
15,937
46,793

1,144,204
1,041,951
4,578,235
4,073,890
Earnings from operations
49,059
77,128
155,227
432,765





Non-operating income (expense):




Finance income
8,658
6,125
29,421
19,626
Finance cost
(19,666)
(13,087)
(57,027)
(53,710)
Gain (loss) on foreign exchange
902
(159)
2,966
(4,877)
Gain on disposal of property and equipment
(96)
2,576
4,049
6,562
Gain (loss) on derivatives
1,232
(21)
1,246
(2,426)

(8,970)
...
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