*Airline achieves EPS of 34 cents, up from 2 cents in Q1 of 2010
*WestJet reports 24th consecutive quarter of profitability
CALGARY, AB -- WestJet Airlines today reported first quarter 2011 net earnings of $48.2 million, or 34 cents per share, a significant improvement from $2.4 million or 2 cents per share reported in the first quarter of 2010. The airline achieved an operating margin of 10.3 per cent which represents an increase of 6.4 points compared to the first quarter of 2010.
"To start 2011 with strong earnings in an environment of elevated fuel costs is another testament to the resiliency of WestJet, the effectiveness of our business model, and the hard work of every WestJetter," commented WestJet President and CEO Gregg Saretsky.
Revenue per available seat mile (RASM) was up 12.1 per cent year over year which was mostly attributable to significant yield improvement and slight load factor growth. "We are pleased that the market has absorbed the fare increases put in place to offset rising fuel costs. These strong first quarter results represent net earnings per guest of roughly twelve dollars which highlights the competitive nature of the airline industry," said Gregg Saretsky. For the second quarter of 2011, WestJet is projecting fuel costs, excluding hedging, to range between $0.95 and $0.98 per litre, and is anticipating continued strong year-over-year RASM growth.
For the first half of 2011, WestJet is expecting cost per available seat mile (CASM), excluding fuel and employee profit share, to be relatively flat on a year-over-year basis compared to the first half of 2010. "WestJetters are well known for providing a great guest experience, as recognized by the recent J.D. Power 2011 Customer Service award, but they are also very cost-conscious and I thank them for their ongoing efforts in keeping our controllable costs in check," concluded Gregg Saretsky.
WestJet's board of directors declared a cash dividend of $0.05 per common voting share and variable voting share for the second quarter of 2011, to be paid on June 30, 2011, to shareholders of record on June 15, 2011. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.