Friday, May 29th16.5°C
26329
25546

WestJet profits soar

WestJet (TSX:WJA) is reporting its "best ever" quarterly earnings, while also announcing deal to sell 10 of its oldest jets and replace them with 10 newer ones.

The Calgary-based airline says its first-quarter net income rose 33.3 per cent to $91.1 million or 68 cents per share. That compared with net earnings of $68.3 million or 49 cents per share in the same 2012 period.

Total revenue was up 8.6 per cent at $967.2 million from $891 million a year ago.

These results mark WestJet's 32nd consecutive quarter of profitability.

Based on the trailing 12 months, the airline achieved a return on invested capital of 14.3 per cent, up from the 13.7 per cent reported in the previous quarter

"We are very pleased to report our best ever quarterly earnings and, for the third consecutive quarter, we exceeded our 12 per cent ROIC target by achieving 14.3 per cent," WestJet president and CEO Gregg Saretsky said in releasing the company's earnings report Tuesday.

WestJet did not identify the "third party" buyer of its oldest Boeing Next-Generation 737-700 aircraft, but said the sales would be made in 2014 and 2015.

Meanwhile, it has an agreement with Boeing to purchase 10 Next-Generation 737-800 aircraft, also in 2014 and 2015. That will effectively reducing the average age of WestJet's fleet by about a year, the airline said.

WestJet has also deferred the delivery of five Boeing Next-Generation 737-700 aircraft from 2014 and 2015 to 2016 and 2017.

"These agreements are part of our strategy to optimize and modernize our fleet mix, which will improve CASM (cost per available seat mile), while maintaining fleet flexibility going forward," Saretsky said.

The Canadian Press


Read more Business News

26407


Recent Trending




Today's Market
S&P TSX15014.09-92.89
S&P CDNX692.45+0.29
DJIA18010.68-115.44
Nasdaq5070.03-27.95
S&P 5002107.39-13.40
CDN Dollar0.8029-0.0017
Gold1204.30+1.50
Oil60.86+2.49
Lumber273.40+0.90
Natural Gas2.83+0.01

 
Okanagan Companies
Pacific Safety0.14+0.01
Knighthawk0.010.00
QHR Technologies Inc1.46-0.02
Cantex0.03+0.00
Anavex Life Sciences0.40+0.00
Metalex Ventures0.07-0.01
Russel Metals25.07-0.13
Copper Mountain Mining1.27-0.03
Colorado Resources0.10+0.00
ReliaBrand Inc0.022+0.009
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.16+0.01
Decisive Dividend Corporation2.28+0.18

 



26407

FEATURED Property
16746994800 Lakeshore Road
6 bedrooms 8 baths
$13,995,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Yard sale pricing

Photo: Thinkstock.comI have deliberately abridged this household tips article to illustrate pricing strategies. "Tips For Pricing Yard Sale Items” was written by Lynnette Walczak, and publi...


What's a robo-advisor?

Photo: ContributedIt can only be attributable to human error. -Hal, 2001: A Space Odyssey For most of us who are within thinking distance of retirement, the term “robo” conjures up image...


Cash stressed seniors

Photo: Thinkstock.comFor many Canadian homeowners, their house represents the biggest portion of their net worth. Now, increasing numbers of seniors are starting to recognize the hidden value of their...

_





25991


Member of BC Press Council


26106