Posted on: 28 July 2015 by Ross McSweeny
WestJet’s results for the second quarter of the financial year (2Q15) show net earnings of C$61.6 million, an 18.9% increase compared with its C$51.8 million net earnings during 2Q14.
2Q15 saw the airline’s available seat miles grow by 7.5% from 6.193 billion in 2Q14 to 6.655 billion, which, although resulting in a 5.5% increase in revenue passenger miles from 4.930 billion to 5.199 billion, drove WestJet’s load factor for 2Q15 down by 1.5 percentage points from 79.6% in 2Q14 to 78.1%.
The airline carried 3.9% more passengers during 2Q15 in comparison with the same period of last year, increasing from 4,772,324 to 4,956,488. Revenue per available seat mile (RASM) across the respective timeframes also rose by 5.7% from 14.16 cents to 15.02 cents as cost per available seat mile (CASM) decreased by 8.1% from 13.76 cents to 12.65 cents. Yields increased by 4%.
“I would like to congratulate our more than 10,000 WestJetters on these exceptional second quarter results which marked our 5th quarter of consecutive record adjusted net earnings,” stated WestJet’s president and CEO, Gregg Saretsky. “The second quarter is historically our most challenging quarter as capacity is transitioned from southern to domestic markets, so it is particularly rewarding to turn in a double digit margin this quarter. With another quarter of record earnings, and after having exceeded our ROIC target for 12 consecutive quarters, we are pleased to announce that we are increasing our target to 13 to 16 per cent, while continuing our commitment to our brand of friendly, caring service and affordable fares.”
Based on the trailing 12 months, the airline achieved a return on invested capital of 16%, up 0.2 percentage points from the 15.8% reported in the previous quarter.
Finally, 2Q15 saw WestJet achieve an on-time performance rate of 91.3%, a year-over-year improvement of 6.8 percentage points, placing WestJet as the top performing North American airline during the quarter.