Airline achieves EPS of 18 cents, up from 5 cents in the second quarter of 2010
CALGARY, AB -- WestJet today reported second quarter 2011 net earnings of $25.6 million, or 18 cents per share, which is up significantly from the net earnings of $6.8 million and 5 cents per share reported in the second quarter of 2010. These financial results mark WestJet's 25th consecutive quarter of profitability.
"A strong pricing environment allowed us to manage our yield in the second quarter to offset the elevated cost of fuel," said WestJet President and CEO Gregg Saretsky. "We saw improvements in our key operational metrics this quarter and also kept our controllable costs in check which contributed to our strong results."
In the second quarter of 2011, WestJet launched four new interline relationships and increased the number of city pairings available through its code-share arrangement with American Airlines. "As we expand our reach and welcome aboard new guests, I thank WestJetters for the genuine level of care they continue to display. Even the small things like a friendly smile and a warm welcome add to an already great guest experience and contribute to our airline's overall success. Their hard work helped deliver the net earnings per guest of $6.50 that we achieved this quarter," commented Gregg Saretsky.
WestJet anticipates continued year-over-year RASM growth for the third quarter of 2011 based on advanced bookings. However, this year-over-year growth is expected to come at a moderated pace versus that seen during the first half of 2011 since the pricing environment was more robust during the second half of 2010 as compared to the first half of 2010.
For the third quarter of 2011, WestJet is projecting fuel costs, excluding hedging, to range between $0.90 and $0.93 per litre. The airline expects the third quarter CASM, excluding fuel and employee profit share, to be slightly up year over year and the full year 2011 CASM, excluding fuel and employee profit share, to remain flat compared to the prior year. "Inflated fuel prices present a challenge to the airline industry, but our low-cost structure and proven business model have us well positioned to succeed going forward," concluded Gregg Saretsky.
Dividend declaration
WestJet's Board of Directors declared a cash dividend of $0.05 per common voting share and variable voting share for the third quarter of 2011, to be paid on September 30, 2011, to shareholders of record on September 14, 2011. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.