Must be a mistake or a typo or something...WestJet was founded in 1996... Through researching other successful airlines in North America - and in particular low-cost carriers from throughout the continent - the team followed the primary examples of Southwest Airlines...
Fact:
*Southwest Airlines has the highest paid employees in the US
*Southwest Airlines employees are UNIONIZED
*Southwest Airlines profits are dropping. Ok, this one is the same...
My good Westjetty friends, when are the unions coming?
Southwest Air profit slips
Associated Press
DALLAS — Southwest Airlines Co., one of the few U.S. carriers able to post a profit in the current industry environment, on Wednesday posted slightly lower earnings for the fourth quarter and said it expects to be profitable again in the current period.
The low-cost carrier's fourth-quarter profit totalled $56-million (U.S.), or seven cents per share, down from $66-million or eight cents per share a year earlier. Results for the latest quarter were reduced by one cent per share by an accounting change. Revenue increased nine per cent to $1.66-billion from $1.52-billion.
Analysts polled by Thomson First Call expected earnings of eight cents per share on $1.68-billion in revenue.
Southwest said fourth-quarter results reflect significantly higher energy costs, but added that, excluding fuel, unit costs fell 4.5 per cent from the year-ago period. The company said its program for hedging fuel prices reduced fuel and oil expenses by $174-million during the quarter.
The company said revenue passenger miles, or traffic, increased 12.6 per cent in the quarter, as compared to a 10.5 per cent increase in available seat miles, or capacity, resulting in a 1.2 point increase in load factor, or percentage of available seats filled, to 65 per cent. The passenger revenue yield per revenue passenger mile, or profit per paying passenger flown one mile, fell 3.9 per cent to 12.08 cents from 12.57 cents in fourth quarter 2003.
For the full year, the company earned $313-million, or 38 cents per share, on revenue of $6.53-billion. In 2003, Southwest earned $298-million, or 36 cents per share, on sales of $5.93-billion. Including a grant from the government, the airline earned $442-million, or 54 cents per share, in 2003. Analysts expected a profit of 42 per share on $6.55-billion in revenue.
Gary C. Kelly, chief executive officer, said “The industry revenue environment continues to be a challenge due to the glut of airline seats. On balance, our fourth quarter revenue challenges are continuing into 2005.” Mr. Kelly said the airline expects to be profitable in the first quarter of 2005, “barring any unforeseen events and assuming revenue trends somewhat improve throughout the quarter.”
Analysts are expecting Southwest to post a profit of six cents per share in the first quarter on revenue of $1.64-billion.
