Nov 2009 Profit Share

[Rotten Apple #1]

The usual Kudos: Profit blah blah blah challenging conditions blah blah focus on cost control yadda yadda strong culture mumble mumble oh yes Profit Share!

A first approximation: Adding the last two quarters of profit share contribution compared to last year's, leads to almost exactly half the $ to divide up this year. Expect your paycheck to be about half (before taxes) compared to last fall (assuming your salary's been about the same).

Not too shoddy and not too shabby.





(E.&O.E.)

[Jastapilot]

I'm not too worried, given we're still profitable. I just wish the stock would reflect our impressive numbers.

[Legacy]

Hey Johnny. I am HOPING for your prediction but remember the board decides on how much profit share we get. I have used you theory before and our profit share cheque wasn't even close to what it should have been given you formula. If the board decides we need the money for rough times then our profit share won't be as much. But since after the share issue we just did I can't see why we need more money to get us through tough times since thats what the 170 million in shares were for but who knows. Regardless, great job guys/gals. Our profit was a lot more than what I was guestimating which makes me a happy camper. take care all

[Rotten Apple #1]

Well that's interesting Legacy. Maybe I knew that and forgot. Is there something to do with 10% operating margin as well? The pretax operating margin is 8.3% for Q3 2009. Maybe that means no profit share?

Somebody help.

[Realitychex]

Well that's interesting Legacy. Maybe I knew that and forgot. Is there something to do with 10% operating margin as well? The pretax operating margin is 8.3% for Q3 2009. Maybe that means no profit share?

Somebody help.

Operating margin, calculated on the basis of operating earnings divided by revenues, was 12.82%.

WJ pretax margin, including interest expense was 10.03%, third best in North America out of the 14 that have reported, (still waiting for Republic, Skywest, Mesa and Air Canada).

The industry weighted average was -1.41%, illustrating that in the BEST quarter of the year, most airlines in North America couldn't generate enough revenues to cover expenses, and the interest costs associated with financing those expenses. That doesn't bode well for the next 6-9 months. It only gets worse from here.

WJ's 3Q break-even load factor was 71.68% compared to an industry weighted average of 84.98%. Note that WJ's Oct l/f was 77.3%, well above break-even levels, meaning October was nicely profitable.

Compare that to, say, US Airways who today reported a "record" load factor of 82.6% in October, but lost money given their most recently calculated BELF, based on 3Q numbers, was 84.9%.

[johnkruk]

Actually johnny, you jackass your paycheck is the same!!! Profit share is a bonus, if there happens to be a profit which there was. Consider yourself lucky you are not working for the other guys, how much do you think there profit share is going to be? I have worked for WJ for a little over a year, my base salary is already more than I was making at the company I worked for before which I had 8 years of service in, on top of that I get a profit share which I'm greatful for.
It gets a little tiring hearing some of the old timers whining because they are not getting rich off the profit share anymore!
Well done Westjet, expanding and still making a profit in the worst recession since the great depression............... but still not good enough for poor Johnny!

[Rotten Apple #1]

Easy there JohnKruk. Not my take at all. But suit yourself on how you take it.

20$ would a been enough for me.

[Rotten Apple #1]

It gets a little tiring hearing some of the old timers whining because they are not getting rich off the profit share anymore!

What the Fuddle Duddle? Not from my mouth.

[ivanhoe]

Actually johnny, you jackass your paycheck is the same!!! Profit share is a bonus, if there happens to be a profit which there was. Consider yourself lucky you are not working for the other guys, how much do you think there profit share is going to be? I have worked for WJ for a little over a year, my base salary is already more than I was making at the company I worked for before which I had 8 years of service in, on top of that I get a profit share which I'm greatful for.
It gets a little tiring hearing some of the old timers whining because they are not getting rich off the profit share anymore!
Well done Westjet, expanding and still making a profit in the worst recession since the great depression............... but still not good enough for poor Johnny!

I think you need to re-read JD's post...and chill. Sheesh....

[Rotten Apple #1]

Consider yourself lucky you are not working for the other guys

You know what, go have a westjet day. Yes I said westjet again. Three layoffs over 10 years and junior here is tellin me how fortunate I should feel. No kidding. Can't remember If I told him to have a westjet day yet.

Now, MODs, take the day off...

p.s. So what realitychex is saying is that my profit share (oops did i say paycheck earlier?) check will be about half what it was last year.

Fuddle Duddle.

[North Shore]

Lemme see here, Jonny D = captain; johnkruk = F/O. Should make for an interesting pairing

Not that I work for Wj, but at 600 (generally thoughtful) postings vs 20, I know whose opinion I'll trust...

[Rotten Apple #1]

I gotta quote you again dude:

Actually johnny, you jackass your paycheck is the same!!! Profit share is a bonus, if there happens to be a profit which there was. Consider yourself lucky you are not working for the other guys, how much do you think there profit share is going to be? I have worked for WJ for a little over a year, my base salary is already more than I was making at the company I worked for before which I had 8 years of service in, on top of that I get a profit share which I'm greatful for.
It gets a little tiring hearing some of the old timers whining because they are not getting rich off the profit share anymore!
Well done Westjet, expanding and still making a profit in the worst recession since the great depression............... but still not good enough for poor Johnny!

[JestWet]

Johnkruk, congratulations on your 1 year anniversary at WestJet.
Judging by your post I would have to say that, sadly, you may have been one of the few to have slipped through the cracks during the WJ interview process. 1 year into the company and you feel like you have the right to anonymously call one of your co-workers a jackass on a public forum? JD may ruffle a few feathers with his comments from time to time but he is hardly an "old-timer" and he is hardly a whiner when it comes to any matters concerning the company as a whole. Regardless, he is a co-worker, and a fellow pilot. Show some professionalism or take your ass back to "the company you worked for before which you had 8 years of service in". Your sort of attitude may have been tolerated over there but you will quickly find that it is not over here. You, my friend, have been drinking the wrong kind of Kool-Aid.

[Legacy]

I am guessing that he may know JD and was joking around with him. At least I am hoping so.

[Rotten Apple #1]

Possible he was ruffling a few feathers motivated by the right things I suppose. Don Bell would say something about "Stinkin Thinkin" at this point. Anyway, it's not "All Good", but it's "mostly good",..., so back to FLiCA I go.

[Clint23]

Possible he was ruffling a few feathers motivated by the right things I suppose. Don Bell would say something about "Stinkin Thinkin" at this point. Anyway, it's not "All Good", but it's "mostly good",..., so back to FLiCA I go.

C'mon Johnny, you know it's all good!

[Rotten Apple #1]

No Clint. I'm a mid forties balding skinny white guy. It is mostly good.

[Herc_Driver]

Regardless of the "size" of the profit share ..... let's not lose sight of the larger picture here. WestJet just posted its 18th straight quarter of profitability. That's the good news here.

Well done WJ. Looks like your hard work and cost containment has paid off.

[_dwj_]

Regardless of the "size" of the profit share ..... let's not lose sight of the larger picture here. WestJet just posted its 18th straight quarter of profitability. That's the good news here.

Well done WJ. Looks like your hard work and cost containment has paid off.

Agreed. I'm not a WJ employee, just a shareholder. WJ are doing amazingly well - one of the few airlines to make a profit during the current recession. Their costs are lower than other airlines, but they can do it without screwing their employees or skimping on safety. The bottom line is that they are a very well managed company with great employees. Keep it up!

[McDoo the Irish Navigator]

John...
What you said...agreed.
I bought a watch with my first profit sharing cheque, today they tell me it's $125 for a new titanium strap.
I'll be ecstatic if my cheque will by me the new strap.

[sarg]

Spring profit shares was based on 4th & 1st quarter profits of approx. $92M. Fall is 2nd & 3rd quarter profits of approx.$40M. Yield determines how much goes into the pot guaranteed minimum up to a maximum of 20%, I beleive, based on yield. Eligible earnings as a percentage of payroll equals your cut of the profit share pot.

Long story short look for about 40% of what you got in the spring. Which if memory serves should be about 1 weeks pay. It's a nice little bonus regardless of the amount.

[Clint23]

John...
What you said...agreed.
I bought a watch with my first profit sharing cheque, today they tell me it's $125 for a new titanium strap.
I'll be ecstatic if my cheque will by me the new strap.

So McDoo, you gotta agree with me..."It's all good" right?

[WetJet]

As I'm not a Westjetter, I have a question: If profit were to remain constant but the number of planes and therefore pilots goes up, are the cheques then diluted? Or if the number of pilots goes up by say 10%, would profit have to go up by 10% for the profit share cheques to remain the same?

[Flying Nutcracker]

As I'm not a Westjetter, I have a question: If profit were to remain constant but the number of planes and therefore pilots goes up, are the cheques then diluted? Or if the number of pilots goes up by say 10%, would profit have to go up by 10% for the profit share cheques to remain the same?

It's bigger than that!!! I don't think pilots are the only ones that get profit sharing... EVERYBODY does!

[Machiavelli]

To answer WetDream, yes, the more employees the more profit is necessary to generate the same return as everybody gets some. The assumption is that if there's more employees, the company is bigger and therefore more profitable. Doesn't always work this way. The reality is that the profit is cyclic thus the profit share cheques are too.