The Canadian airline WestJet has announced its third quarter results for 2018, this week along with details of a new service non-stop from St. John's to Fort Lauderdale this winter.
The airline impressed industry commentators with recording net earnings of $45.9 million, this result compares with net earnings of $135.9 million reported in the third quarter of 2017. Year-to-date, WestJet recorded net earnings of $62.3 million. Many had thought the company would report loss for this difficult trading period.
"We are pleased to return to profitability in the third quarter," Ed Sims, WestJet President and CEO. "We have achieved this result despite continued downward pressure from the dramatic increases in fuel price and competitive capacity, along with the lingering impact of the threat of industrial action. We now look forward to the delivery of our first Boeing 787-9 Dreamliner in late January, and starting direct services in Spring 2019 from Calgary to London (Gatwick), Paris, and Dublin. I would like to thank every WestJetter for their focus on delivering award-winning service to our guests."
Fort Lauderdale weekly service from St Johns
The new St. John's to Fort Lauderdale service will start March 11, 2019 and run through to May 13, 2019. "WestJet knows that the community of St. John's embraces Florida in the winter," said Brian Znotins, WestJet Vice-President Network Planning, Alliances and Corporate Development. "Along with our seasonal service to Tampa and Orlando, we are pleased to provide convenient, non-stop service to sunny Fort Lauderdale for those looking to jet south for warm air, beaches or cruising this winter."
"We're delighted that WestJet is expanding its service to the sunny south with a direct seasonal service to Fort Lauderdale," said Keith Collins, President and CEO, St. John's International Airport Authority. "Florida is one of our top sun destinations and having a greater capacity for our travellers, in addition to Tampa and Orlando, will be well-received."
Route
|
Frequency
|
Departing
|
Arriving
|
Effective
|
St. John's – Fort
Lauderdale |
Once
weekly |
2:30 p.m
|
6:44 p.m
|
March 11,
2019 |
Fort Lauderdale – St.
John's |
Once
weekly |
7:30 a.m
|
1:38 p.m
|
March 11,
2019 |
Operating highlights (stated in Canadian dollars)
Q3 2018
|
Q3 2017
|
Change
| |
Net earnings (millions)
|
$45.9
|
$135.9
|
(66.3%)
|
Diluted earnings per share
|
$0.40
|
$1.15
|
(65.2%)
|
Total revenue (millions)
|
$1,260.9
|
$1,214.6
|
3.8%
|
Operating margin
|
6.2%
|
16.3%
|
(10.1 pts)
|
ASMs (available seat miles) (billions)
|
8.880
|
8.077
|
9.9%
|
RPMs (revenue passenger miles) (billions)
|
7.516
|
6.922
|
8.6%
|
Load factor
|
84.6%
|
85.7%
|
(1.1 pts)
|
Segment guests
|
6,940,569
|
6,530,873
|
6.3%
|
Yield (revenue per revenue passenger mile) (cents)
|
16.78
|
17.55
|
(4.4%)
|
RASM (revenue per available seat mile) (cents)
|
14.20
|
15.04
|
(5.6%)
|
CASM (cost per available seat mile) (cents)
|
13.32
|
12.58
|
5.9%
|
Fuel costs per litre (cents)
|
85
|
62
|
37.1%
|
CASM, excluding fuel and employee profit share (cents)*
|
9.36
|
9.29
|
0.8%
|
*Refer to reconciliations in the accompanying tables for further information regarding calculations.
|
Condensed Consolidated Interim Statement of Earnings
| ||||
(Stated in thousands of Canadian dollars, except per share amounts)
| ||||
(Unaudited)
| ||||
Three months ended
September 30
|
Nine months ended
September 30
| |||
2018
|
2017(i)
|
2018
|
2017(i)
| |
Revenue:
| ||||
Guest
|
1,215,223
|
1,157,793
|
3,363,847
|
3,192,381
|
Other
|
45,679
|
56,831
|
176,352
|
195,195
|
1,260,902
|
1,214,624
|
3,540,199
|
3,387,576
| |
Operating expenses:
| ||||
Aircraft fuel
|
343,276
|
237,973
|
926,688
|
698,424
|
Salaries and benefits
|
249,733
|
231,197
|
752,517
|
691,122
|
Rates and fees
|
185,999
|
162,423
|
530,553
|
488,549
|
Depreciation and amortization
|
104,644
|
100,519
|
321,140
|
297,484
|
Sales and marketing
|
107,059
|
97,318
|
325,509
|
291,251
|
Maintenance
|
54,826
|
47,286
|
162,739
|
160,787
|
Aircraft leasing
|
32,612
|
40,070
|
106,985
|
124,976
|
Other
|
96,302
|
71,793
|
296,497
|
236,953
|
Employee profit share
|
8,276
|
27,610
|
11,403
|
42,392
|
1,182,727
|
1,016,189
|
3,434,031
|
3,031,938
| |
Earnings from operations
|
78,175
|
198,435
|
106,168
|
355,638
|
Non-operating income (expense):
| ||||
Finance income
|
6,862
|
4,853
|
20,763
|
13,500
|
Finance cost
|
(12,967)
|
(11,768)
|
(37,361)
|
(40,623)
|
Gain (loss) on foreign exchange
|
(2,588)
|
(204)
|
2,064
|
(4,717)
|
Gain on disposal of property and equipment
|
1,333
|
69
|
4,145
|
3,986
|
Gain (loss) on derivatives
|
(21)
|
(441)
|
14
|
(2,405)
|
(7,381)
|
(7,491)
|
(10,375)
|
(30,259)
| |
Earnings before income tax
|
70,794
|
190,944
|
95,793
|
325,379
|
Income tax expense:
| ||||
Current
|
4,507
|
24,449
|
4,734
|
44,501
|
Deferred
|
20,432
|
30,558
|
28,764
|
49,625
|
24,939
|
55,007
|
33,498
|
94,126
| |
Net earnings
|
45,855
|
135,937
|
62,295
|
231,253
|
.
(Images Fort Lauderdale Sunny.org / WestJet)
