Westjet in decline....profits slammed

[Blastor]

WestJet profit drops 69%

Thursday, July 28, 2005 Updated at 10:35 AM EDT

Canadian Press

CALGARY — Discount air carrier WestJet Airlines Ltd. said Thursday it dropped to a second quarter profit of $2.3 million from year-ago $7.5 million as fuel costs ballooned 29 per cent year-over-year.

The Calgary-based airline said that amounted to a diluted per-share profit of 2 cents, compared to 6 cents per share in the same quarter a year before.

Analysts had on average expected profits of 14 cents per share for the period.

WestJet said revenues rose to $326 million in the period ended June 30, up from $257 million in the year-ago quarter.

“We performed exceptionally well at containing our costs this period as our team improved efficiencies and realized unit-cost reductions in virtually every facet of our controllable costs,” WestJet president and CEO Clive Beddoe said in a release.

Capacity grew in the quarter, the airline said, with available seat miles increasing by 23.3 per cent to 2.5 billion from 2.1 billion in the same quarter last year. WestJet's load factor for the quarter was 71 per cent, compared with 67.5 per cent in the same period of 2004.

Shares of WestJet dropped 30 cents or 2.3 per cent to $12.90 in Toronto.

[Flightlevels]

good work wj ers...back to profitable times we've rounded the corner! profit being the key word here.

[Canus Chinookus]

I had a chuckle with Blastor's title... again.

[Trevor]

The important part is that we still made a profit.

[metal overcast]

Now if you guys would start hiring before next year it would be fantastic.

[gelbisch]

Yeah, enough of the stupidity, Blastor. You're topic line is a little overly dramatic.

I am in no way, shape or form a WestJet fan, but the fact that they turned a profit at all is impressive in aviation and really all that counts. We don't need any more airlines tanking or anymore lads/gals in the unemployment lines.

Well done, folks!

[cedar tree]

It's dissapointing to see WJ shares sliding since spring. Now the target of 20 anaylists has been dropped well below $20 per share. When is WJ planning the expansion over the Atlantic? I own shares and I"m debating selling all after 3rd quarter. Any thoughts?

[NovaBoy]

I don't believe we will be flying over the Atlantic anytime soon, unless its charter work for Transat. Hawaii is the goal once our 180 min ETOPS is approved.

From what I hear the 3rd quarter will be a very good one, so hopefully the stock will rise soon after.

[Snow Monkey]

Is HNL official or just speculation? idon't think anything has even been announced to ETOPS destinations has it?

[NovaBoy]

Not official, but very strong rumour, plus there is a real push for the 180min ETOPS. I guess we will have to wait and see

[pika]

Wait and see your ticket prices to HNL when you have to increase them by a third to account for only being able to carry 100 passengers in a 140 passenger airplane. What ever happened to the low cost model?

[EI-EIO]

pika

if WJ have 737 options left Boeing would be happy to convert to -900ER I suspect to push along that launch and cover the 752 market share.

[Froggy]

Pika,
We have 5 737-800's with 166 seats (normaly can hold 189) this is for the overwater longer flights! less bums, less bags, more gas!

[pika]

Pika,
We have 5 737-800's with 166 seats (normaly can hold 189) this is for the overwater longer flights! less bums, less bags, more gas!

Better check the plan for the -800's and "overwater" work with management. Isn't ETOPS only being pursued for the -700's?

[W5]

Nope. ALL Ng's.

[WJ Macho Man]

Hows you're stock puchase plan at CanJet Blastor.