WestJet Airlines (Calgary) has announced its fourth quarter and year-end results for 2012. The airline reported fourth quarter net earnings of $60.9 million, or $0.46 per share and full-year net earnings of $242.4 million, or $1.78 per share; up significantly from the net earnings of $148.7 million, or $1.06 per share, reported for 2011. These financial results mark WestJet’s 31st consecutive quarter of profitability. Based on the trailing twelve months, the airline achieved a return on invested capital of 13.7 per cent, up from the 12.7 per cent reported last quarter.
“We are very pleased with the positive momentum generated in 2012 that culminated with us reporting record annual earnings, record high load factors and for the second consecutive quarter, we surpassed our return on invested capital target of 12 per cent by achieving 13.7 per cent for the year,” said WestJet President and CEO Gregg Saretsky. “Fundamentally our momentum is traced to the commitment and dedication of our over 9,000 WestJetters, and I am very proud of the positive and caring attitude they exemplify each and every day.”
Operating highlights (stated in Canadian dollars)
| Q4 2012 | Q4 2011 | Change | Full-Year 2012 |
Full-Year 2011 |
Change | |
| Net earnings (millions) | $60.9 | $35.6 | 71.3% | $242.4 | $148.7 | 63.0% |
| Diluted earnings per share | $0.46 | $0.26 | 76.9% | $1.78 | $1.06 | 67.9% |
| Total revenues (millions) | $860.6 | $781.5 | 10.1% | $3,427.4 | $3,071.5 | 11.6% |
| Operating margin | 10.6% | 7.6% | 3.0 pts | 11.0% | 8.4% | 2.6 pts |
| ASMs (available seat miles) (billions) | 5.487 | 5.329 | 3.0% | 22.064 | 21.186 | 4.1% |
| RPMs (revenue passenger miles) (billions) | 4.493 | 4.194 | 7.1% | 18.263 | 16.891 | 8.1% |
| Load factor | 81.9% | 78.7% | 3.2 pts | 82.8% | 79.7% | 3.1 pts |
| Segment Guests | 4,314,024 | 3,996,593 | 7.9% | 17,423,352 | 16,040,682 | 8.6% |
| Yield (revenue per revenue passenger mile) (cents) |
19.16 | 18.64 | 2.8% | 18.77 | 18.18 | 3.2% |
| RASM (revenue per available seat mile) (cents) |
15.68 | 14.67 | 6.9% | 15.53 | 14.50 | 7.1% |
| CASM (cost per available seat mile) (cents) |
14.01 | 13.55 | 3.4% | 13.83 | 13.29 | 4.1% |
| CASM, excluding fuel and employee profit share (cents)* |
9.32 | 9.03 | 3.2% | 9.12 | 8.85 | 3.1% |
*Refer to reconciliations in the accompanying tables for further information regarding calculations.
WestJet also announced its intention, upon the expiry of the 12-month period of its 2012 normal course issuer bid, to make an application to the Toronto Stock Exchange to initiate a further normal course issuer bid for up to 5 per cent of the currently issued and outstanding shares. The airline also declared an increase to its quarterly dividend from $0.08 to $0.10. “Continuing the share buy-back program and increasing the dividend signals our confidence in the strength of the business and our commitment to return value to shareholders,” added Gregg Saretsky.
Throughout 2012, WestJet was able to expand its virtual network with the implementation of 13 new interline partnerships, and by evolving four existing interline partnerships (Delta Air Lines, Korean Air, China Eastern Airlines and British Airways) into code-share relationships, bringing the total number of airline partnerships to thirty worldwide.
WestJet expects moderate growth in RASM and margin expansion in the first quarter of 2013, notwithstanding the difficult prior year comparisons and increases in system wide capacity. For the full year 2013, the airline expects CASM, excluding fuel and employee profit share, to increase between two to three percent year-over-year. For the first quarter of 2013, WestJet expects fuel costs to range between $0.94 and $0.96 per litre.
Dividend declaration
On February 5, 2013 WestJet’s Board of Directors declared a cash dividend of $0.10 per common voting share and variable voting share for the first quarter of 2013, to be paid on March 28, 2013, to shareholders of record on March 13, 2013. 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.
Copyright Photo: Ton Jochems. Boeing 737-7CT C-FKIW (msn 37955) arrives at Las Vegas.
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Filed under: WestJet Tagged: 37955, 737, 737700, 7377CT, aviation, Boeing, Boeing 737, Boeing 737700, CFKIW, LAS, Las Vegas, transportation, WestJet, WestJet Airlines
