WestJet reports first quarter net earnings of $89 million

CALGARY, May 6, 2014 /CNW/ – WestJet (TSX: WJA) today announced its first quarter results for 2014, with net earnings of $89.3 million, or $0.69 per diluted share. This compares with the net earnings of $91.1 million, or $0.68 per diluted share reported in the first quarter of 2013. Based on the trailing twelve months, the airline achieved a return on invested capital of 13.7 per cent, compared with the 13.9 per cent reported in the previous quarter. These results include pre-tax recoveries of value added taxes of $17.6 million associated with fuel costs and $2.5 million associated with airport costs incurred from 2009 to 2013.

“We had a very strong start to 2014, as we achieved our second best ever first quarter earnings, recorded our 36th consecutive quarter of profitability and exceeded our 12 per cent ROIC target for the seventh consecutive quarter, even when we exclude the tax recoveries,” said WestJet President and CEO Gregg Saretsky. “Our continued track record of profitability combined with strong liquidity and solid market position contributed to Standard & Poor’s assigning WestJet an investment grade credit rating of BBB- this past February, placing us among the very few airlines in the world to be rated investment grade. I want to thank our nearly 10,000 WestJetters for all their hard work that makes these accomplishments possible.”

Supporting WestJet Encore’s expansion across Canada, WestJet announced in March 2014 that it had converted five of its 25 options to firm orders for Bombardier Q400 NextGen aircraft, scheduled for delivery in the second half of 2015.

In February 2014, WestJet announced it had signed a multi-year agreement with Panasonic Avionics Corporation to provide the airline with a new inflight entertainment system with added connectivity and entertainment options. “Combining wireless connectivity with our continually improving schedule and network, our WestJet Rewards program and the additional amenities and space offered by our Plus product is part of our ongoing plans to enhance our value proposition for both business and leisure travelers,” said Bob Cummings, WestJet Executive Vice-President, Sales, Marketing and Guest Experience.

Dividend declaration
On May 5, 2014, WestJet’s Board of Directors declared a cash dividend of $0.12 per common voting share and variable voting share for the second quarter of 2014, to be paid on June 30, 2014, to shareholders of record on June 18, 2014. 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.