Westjet Tops Estimates
WestJet Airlines Ltd reported a higher-than-expected quarterly profit as the Canadian carrier flew more passengers.
Load factor, which measures how effectively the airline filled seats, rose to 80.2 per cent in the fourth quarter, from 78.4 per cent a year earlier. Available seat mile (ASM), rose 11.2 per cent in the quarter, while cost per available seat mile, a measure of how much an airline spends to fly a passenger, fell 0.8 per cent to 12.86 Canadian cents. However, the company’s fuel expenses, typically an airline’s largest variable cost, rose 15.5 per cent to $210.5-million.
The company’s net earnings fell to $55.2-million, or 47 cents per share, in the fourth quarter ended Dec. 31, from $63.4-million, or 51 cents per share, a year earlier.
Analysts on average had expected a profit of 41 cents per share, according to Thomson Reuters I/B/E/S. Revenue rose 6.2 per cent to $1.02-billion, in line with estimates.
Source: The Globe & Mail