Westjet Airlines Ltd. (WJA.TO) reported first-quarter of 2013 net earnings of C$91.1 million, or C$0.68 per share, up from C$68.3 million, or C$0.49 per share reported in the first quarter of 2012. Analysts polled by Thomson Reuters expected the company to report earnings of C$0.63 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter rose to C$967.24 million from C$890.95 million in the prior year quarter. Nine analysts had consensus revenue estimate of C$969.25 million for the quarter.
WestJet's Board of Directors declared a cash dividend of C$0.10 per common voting share and variable voting share for the second quarter of 2013, to be paid on June 28, 2013, to shareholders of record on June 12, 2013.
The airline said its April 2013 traffic rose 3.2% to 1.666 billion revenue passenger miles or RPMs from 1.615 billion RPMs in the same period last year.
The airline's April 2013 capacity was 2.013 billion available seat miles or ASMs, up 7.4% from 1.874 billion ASMs in the prior year period.
The airline flew 1.5 million guests in April, a year-over-year increase of 2.2 per cent or approximately 33,000 additional guests.
Load factor for April 2013 was 82.7%, down 3.5 points from 86.2% reported in April 2012.
In addition, the airline said its first-quarter traffic increased 7.8% to 5.088 billion RPMs from 4.721 billion RPMs in the same quarter last year. The airline's first-quarter capacity was 6.032 billion ASMs, up 6.0% from 5.690 billion ASMs in the prior year period.
Load factor for the quarter was 84.3%, up 1.3 points from 83.0% reported in the year ago quarter.
For the second quarter of 2013, WestJet expects strong traffic growth and earnings among its best ever for a second quarter, notwithstanding an expected moderate decline in its second quarter revenue per available seat mile or RASM which will be impacted by the timing of Easter and Passover, the elimination of Thomas Cook capacity purchase commitments, the loss of the one-time benefit from Air Canada's labour uncertainty in the second quarter of 2012, and accelerating capacity growth fueled by higher utilization and the launch of WestJet Encore.
For the second quarter of 2013, WestJet expects cost per available seat mile or CASM, excluding fuel and employee profit share, to be flat to up one per cent year-over-year.
For the full year 2013, the airline now expects CASM, excluding fuel and employee profit share, to be flat to up one per cent year-over-year primarily as a result of cost reductions achieved and anticipated through its business transformation initiative, but excluding any benefit from the exemption it received yesterday from Transport Canada, to the requirement for one flight attendant for every forty passengers on board.
For comments and feedback: editorial@rttnews.com