Monday, June 29th24.2°C
25936
25998

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

26563


Recent Trending




Today's Market
S&P TSX14490.15-317.94
S&P CDNX667.09-12.29
DJIA17596.35-350.33
Nasdaq4958.47-122.04
S&P 5002057.64-43.85
CDN Dollar0.8055-0.001
Gold1176.30-2.20
Oil58.70-0.26
Lumber291.30-0.90
Natural Gas2.754-0.096

 
Okanagan Companies
Pacific Safety0.165-0.010
Knighthawk0.010.00
QHR Technologies Inc1.53-0.02
Cantex0.05+0.00
Anavex Life Sciences0.42+0.01
Metalex Ventures0.075+0.010
Russel Metals22.68-0.40
Copper Mountain Mining1.17-0.05
Colorado Resources0.095+0.005
ReliaBrand Inc0.0064+0.0010
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.185+0.015
Decisive Dividend Corporation2.50+0.42

 



26764

FEATURED Property
22909453989 Milford Road
4 bedrooms 4 baths
$1,249,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...


TFSA strategies

Photo: Thinkstock.comThe federal government has increased the annual contribution limit of Tax-Free Savings Accounts (TFSA) to $10,000. Going forward, the annual limit will no longer be indexed to inf...


Renovation dreaming

Photo: Thinkstock.comDreaming of a new fire pit? A deep soaker tub?With summer on its way, lots of families have renovations on their minds. Did you know that home buyers can apply for a Purchase Plus...

_



26586

26509


Member of BC Press Council


25831