WestJet: Earnings up 16 pe cent from last year

WestJet today announced its fourth quarter and year-end results for 2015, with record full-year net earnings of $367.5 million, or $2.92 per diluted share. This compares with the adjusted net earnings of $317.2 million, or $2.46 per diluted share reported in the full-year 2014, up 16 percent and 19 percent, respectively. For the fourth quarter, the airline reported diluted earnings per share of $0.51, down 27 percent from $0.70 reported last year. These fourth quarter 2015 results include a pre-tax loss on foreign exchange of $10.1 million.

This represents WestJet’s 43rd consecutive quarter of profitability and based on the trailing twelve months, the airline achieved a return on invested capital of 15.3 percent, compared with the 16.1 percent reported in the previous quarter, and within WestJet’s target range of 13 to 16 percent.

“Today we reported the third best fourth quarter in WestJet’s history to complete a record year in 2015. Notwithstanding the impact that recent economic weakness in Alberta has had on our results, our decision to increase our normal course issuer bid demonstrates our confidence in WestJet’s proven business model and the financial strength of our airline,” said WestJet President and CEO Gregg Saretsky. “My thanks go out to our more than 11,000 WestJetters for all their hard work in driving our continuing success as we look forward to celebrating WestJet’s 20th birthday in 2016, a year which will see the launch of our exciting new wide-body service to London Gatwick.”