AVCANADA

It is currently Sat Oct 21, 2017 3:19 pm

All times are UTC-07:00




Post new topic  Reply to topic  [ 3 posts ] 
Author Message
PostPosted: Tue Nov 01, 2016 8:44 am 
Offline
Rank 4
Rank 4
User avatar

Joined: Fri Jan 22, 2010 7:33 pm
Posts: 240
Quote:
WestJet Airlines Ltd, Canada’s second-largest carrier, reported a better-than-expected quarterly profit as it flew more passengers and expenses fell, and said it expects revenue per available seat mile to turn positive in the first quarter.

The company’s revenue per available seat mile (RASM) – an indicator of an airline’s efficiency, which is calculated by dividing its operating income by available seat miles – has fallen for seven straight quarters including the latest quarter.

The airline’s RASM fell 2.7 per cent in the third quarter and is expected to fall by a steeper 4-6 per cent in the current quarter, WestJet said in a statement on Tuesday.


WestJet said it expects cost per available seat mile (CASM), excluding fuel and employee profit share, to fall by 1-2 per cent in the fourth quarter.

The company’s adjusted CASM, a measure of how much an airline spends to fly a passenger, rose 0.3 per cent in the third quarter.

Fuel expenses, typically an airline’s largest variable cost, declined 0.3 per cent in the quarter.

Airlines have been benefiting as oil prices have remained low for more than 2 years now. However, oil prices which are now showing a slight recovery may indicate that fuel costs will rise.

WestJet estimated full-year capital expenditure of $920-million, which is at the higher end of its previous estimate of $900-million-$920-million. The company said it expects to spend $880-million-$900-million in 2017.

The airline flew 5.9 million passengers in the third quarter, an increase of 7 per cent from a year earlier. Load factor, which measures how effectively it filled seats, rose to 84 per cent from 81.8 per cent, a year earlier.

WestJet’s net earnings rose to $116-million, or 97 cents per share, in the third quarter ended Sept. 30, from $101.80-million, or 82 cents per share, a year earlier.

Analysts on average had expected a profit of 94 cents per share, according to Thomson Reuters I/B/E/S.

The Calgary-based airline’s revenue rose 7.6 per cent to $1.12-billion, slightly missing estimates of $1.13-billion.


I guess the LGW experiment isn't going as bad as people think. Stock is up 5% this morning.



Top
   
PostPosted: Tue Nov 01, 2016 12:32 pm 
Offline
Rank 5
Rank 5

Joined: Mon May 17, 2004 4:03 pm
Posts: 399
Or the Encore experiment is doing well. Smaller aircraft, better matched to the demand drives up load factor. Massive growth planned at the connector, very little real growth at the mainline...


Top
   
PostPosted: Tue Nov 01, 2016 3:44 pm 
Offline
Rank 3
Rank 3

Joined: Mon Sep 03, 2007 7:12 pm
Posts: 182
Not quite, most of the capacity growth comes from the WB operation. It's making money, simple as that and they've stated this. Mainline growth will come mostly from wide bodies. Encore growth is also a nice boost for stand alone profit as well as network feed.


Top
   
Display posts from previous:  Sort by  
Post new topic  Reply to topic  [ 3 posts ] 

All times are UTC-07:00


Who is online

Users browsing this forum: Majestic-12 [Bot], young grasshopper and 23 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Limited
[ GZIP: Off ]

For questions/comments please send them to
avcanada@gmail.com


AvCanada Topsites List
AVIATION TOP 100 - www.avitop.com Avitop.com

While the administrators and moderators of this forum will attempt to remove or edit any generally objectionable material as quickly as possible, it is impossible to review every message. If you feel a topic or post is inappropriate email us at avcanada@gmail.com .  By reading these forums you acknowledge that all posts made to these forums express the views and opinions of the author and not the administrators, moderators or webmaster (except for posts by these people) and hence will not be held liable. This website is not responsible or liable in any way for any false or misleading messages or job ads placed at our site. 

Use AvCanada's information at your own risk!

We reserve the right to remove any messages that we deem unacceptable.
When you post a message, your IP is logged and may be provided to concerned parties where unethical or illegal behavior is apparent. All rights reserved.