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WestJet has reported record first quarter net earnings of $68.3 million up from $48.2 million from the first quarter of 2011. This represents the company 28th consecutive quarter of profitability.
“We are extremely pleased with the record first quarter results and our margin expansion as revenue growth outpaced elevated fuel costs, WestJet president and CEO Gregg Saretsky. We achieved our highest first quarter load factor, improved the overall yield and made good progress towards our return on invested capital target.
“Revenue growth exceeded our expectations this quarter and contributions to the top-line increase are coming from the ongoing improvement in our business offering, our airline partnership strategy, the strength of WestJet Vacations and increases in ancillary revenue,” commented Gregg Saretsky.
WestJet now projects its 2012 full-year CASM, excluding fuel and employee profit share will be up 1.5 to 2.5 per cent. This is mainly attributable to higher revenue-related expenditures resulting from an improved revenue outlook and increased airport operation costs resulting from an increase in operations at higher cost airports such as New York City, Chicago and Toronto. For the second quarter of 2012, the airline projects its fuel costs will range between $0.95 and $0.97 per litre.
WestJet also took the opportunity to announce its selection of Bombardier Q400 NextGen turboprops for its new regional airline, set to be launched in the second half of 2013. For more on this story, click here.
