WestJet reports record third quarter 2014 results

CALGARY, Nov. 4, 2014 /CNW/ – WestJet (TSX: WJA) today announced its third quarter 2014 results, with record adjusted net earnings1 of $85.4 million, or $0.66 per diluted share. This compares with the net earnings of $65.1 million, or $0.50 per diluted share reported in the third quarter of 2013, up 31.2 per cent and 32.0 per cent, respectively. Based on the trailing twelve months, the airline achieved a return on invested capital of 13.8 per cent, compared with the 13.7 per cent reported in the previous quarter. These adjusted results exclude a pre-tax non-cash loss of $45.5 million associated with the previously disclosed sale of 10 of our oldest Boeing 737 aircraft.

“We are very pleased with another quarter of record financial results, exceeding our ROIC target for the ninth consecutive quarter and improving our on-time performance rate by 3.4 percentage points year over year to 81.9 per cent,” said WestJet President and CEO Gregg Saretsky. “We continue to strengthen WestJet’s network with the further rollout of WestJet Encore, our recent announcement of service to Glasgow, our first destination in the United Kingdom, and the evolution of our existing interline agreements with China Airlines and Qantas into code-share agreements. My thanks go out to our more than 10,000 WestJetters for their tremendous dedication to providing a remarkable guest experience as our airline continues to grow profitably and I am thrilled to add another $19 million in profit share this quarter to be paid out later this month.”

In September, WestJet announced the launch of its new WestJet Rewards tiers program, which will make frequent guests eligible for higher WestJet dollar earn rates on WestJet flights, additional companion flights, and new easy-to-use flight benefits. In addition, the WestJet RBC World Elite MasterCard was once again named Canada’s best travel rewards card, according to an annual review and ranking of credit cards in the September 2014 issue of MoneySense magazine. The number-one-ranked WestJet RBC World Elite MasterCard provides a complimentary first checked bag, as well as another option to earn WestJet dollars that can be redeemed to anywhere WestJet flies, at any time.

Dividend declaration
On November 3, 2014, WestJet’s Board of Directors declared a cash dividend of $0.12 per common voting share and variable voting share for the fourth quarter of 2014, to be paid on December 31, 2014, to shareholders of record on December 17, 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.