WestJet reports record full-year and fourth quarter results for 2014

CALGARY, Feb. 3, 2015 /CNW/ – WestJet (TSX: WJA) today announced its fourth quarter and year-end results for 2014, with record adjusted full-year net earnings1 of $317.2 million, or $2.46 per diluted share. This compares with the net earnings of $268.7 million, or $2.03 per diluted share reported in the full-year 2013, up 18 per cent and 21 per cent, respectively. For the fourth quarter, the airline reported record diluted earnings per share of $0.70, up 35 per cent from $0.52 reported last year. These fourth quarter 2014 results include pre-tax incentive payments of $9.8 million associated with WestJet’s new pilot agreement reached in December 2014 and a pre-tax non-cash loss of $2.5 million related to the previously disclosed sale of 10 of our oldest Boeing 737 aircraft.

This represents WestJet’s 39th consecutive quarter of profitability and based on the trailing twelve months, the airline achieved a return on invested capital of 14.3 per cent, compared with the 13.8 per cent reported in the previous quarter, representing the 10th consecutive quarter in which WestJet exceeded its 12 per cent target.

“In 2014 we continued to execute on our profitable growth strategies which included the expansion of WestJet Encore, the further unbundling of our fares, the introduction of WestJet Rewards tiers, and the very successful launch of our first transatlantic service to Dublin, Ireland,” said WestJet President and CEO Gregg Saretsky. “I want to thank our more than 10,000 WestJetters for all their contributions that made 2014 a record year, and I look forward to an exciting 2015 which will see us flying our own wide-body aircraft for the first time.”

Dividend declaration
On February 2, 2015, WestJet’s Board of Directors declared a cash dividend of $0.14 per common voting share and variable voting share for the first quarter of 2015, to be paid on March 31, 2015, to shareholders of record on March 18, 2015. 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.

“This marks the fifth dividend increase since we first introduced our quarterly dividend in 2010 and demonstrates both our confidence in WestJet’s investment grade business model and our commitment to returning value to shareholders,” added Gregg Saretsky.