WestJet Reports 130 Percent Increase in Quarterly Earnings

WestJet posted second-quarter 2010 net earnings of $21 million, a 130 percent increase in net earnings, year-over-year. Excluding the impact of a one-time special item related to revised estimates for provincial income tax allocation calculations in the second quarter of 2010, WestJet’s adjusted second quarter net earnings for 2010 were $23.4 million.

WestJet reported an operating margin of 6.6 percent, compared to 6.9 percent in the second quarter of 2009.

WestJet believes the Canadian economy needs to rebound further before it can support more new domestic capacity growth. Domestic capacity was therefore reduced during the second quarter and new capacity directed into the airline’s southern markets.

Most of the new capacity will continue to be deployed outside of Canada in the third and fourth quarters as well. The airline’s capacity for the third quarter is expected to increase between 11 and 12 percent. Its full-year capacity is expected to increase 9 to 10 percent.