WestJet announces third quarter results
November 10, 2008
WestJet today announced third quarter net earnings of $54.7 million that compared to $76.1 million reported in the third quarter of 2007, representing a 28.1 per cent decrease. Year to date, 2008 net earnings were $137.4 million, a 16.9 per cent increase from the $117.5 million earned in the same nine months of 2007.
'Our strong quarterly and record year-to-date net earnings strengthen our position as an industry-leading airline. Based on airlines that have reported, our third quarter results are among the best worldwide,' commented Sean Durfy, WestJet President and CEO. 'Nine months into what can be described as an unpredictable year with fluctuating oil prices, financial turmoil and economic uncertainty, we continued our growth in a purposeful and profitable manner. During this time of global credit crisis, we are comfortable with our cash position of over $800 million.'
'While our third quarter results reflect a combination of higher fuel costs and the beginning of a more challenging environment for demand, we continued to demonstrate our ability to weather the financial storm and effectively manage costs,' continued Sean Durfy. 'This resilience is largely due to our dedicated team of over 7,300 WestJetters.'
WestJet's third quarter 2008 diluted earnings per share (EPS) was 42 cents, compared to 58 cents in the same period last year; this was a decline of 27.6 per cent. Year to date, diluted EPS increased 16.7 per cent to $1.05, from 90 cents in 2007.
The airline reported a third quarter earnings before tax (EBT) margin of 11.0 per cent and an operating margin of 13.4 per cent. Year to date, WestJet's EBT margin was 10.2 per cent and its operating margin was 12.2 per cent.
WestJet's third quarter revenue for 2008 improved 18.5 per cent to $718.4 million, compared to $606.2 million in the third quarter of 2007. Year to date, revenue increased 22.8 per cent to $1.934 billion, from $1.575 billion in 2007.