WestJet ends 2015 with weak profit, revenue

CALGARY -- WestJet Airlines has been hit hard by the dollar's decline, which contributed to a 30 per cent decline in fourth-quarter profit.

See Full Article

The Calgary-based airline says its net income and adjusted earnings were both $63.4 million or 51 cents per share, down by $27.3 million from $90.7 million the fourth quarter of 2014.

WestJet says the 2015 fourth quarter included a $10.1 million loss on foreign exchange, compared with a $2.5 million loss a year earlier.

WestJet' revenue also declined by 3.6 per cent to $958.7 million in the three months ended Dec. 31, down $35.7 million from $994.4 million in the fourth quarter of 2014.

The company didn't profit details on the revenue decline but suggested some of it related to Alberta's recent economic weakness as the oil and gas sector grapples with a dramatic decline in prices since late 2014.

Total operating expences including fuel, salaries and profit sharing, aircraft leasing and maintenance declined to $846 million, down one per cent from $854.8 million.

The fourth quarter provided a weak ending to an otherwise strong year for WestJet, which saw net income rise by 29.4 per cent in 2015 to $367.5 million. WestJet's adjusted earnings were also $367.5 million, up 15.9 per cent from 2014.

"Today we reported the third best fourth quarter in WestJet's history to complete a record year in 2015," WestJet president and CEO Gregg Saretsky said in a statement.

The company says it will increase its 2015-16 share buyback program to six million shares, up 50 per cent from the previous limit of four million shares. WestJet has already bought back 3.2 million shares for cancellation since May 13, 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," Saretzky said.



Advertisements

Latest Economic News

  • Trump administration sending Congress $4.1-trillion budget

    Economic CTV News
    WASHINGTON -- U.S. President Donald Trump is sending Congress a $4.1 trillion spending plan that relies on faster economic growth and steep cuts to programs supporting low-income individuals to balance the government's books over the next decade. Source
  • Lumber exports help push March wholesale sales above $60B

    Economic CTV News
    OTTAWA - Statistics Canada says wholesale sales were up 0.9 per cent in March, surpassing the $60 billion mark for the first time. Total Canadian wholesale sales for that month reached $60.2 billion as strength in lumber exports offset declines in motor vehicles and heavy machinery. Source
  • Microsoft Surface gets battery boost, more viewing angles

    Economic CTV News
    NEW YORK -- Microsoft is refreshing its Surface Pro tablet with longer battery life and faster processors. The new, fifth-generation device -- simply called Surface Pro -- won't look or feel drastically different from its predecessor. Source
  • A 10% mortgage hike would sink almost three quarters of homeowners, Manulife says

    Economic CBC News
    Nearly three quarters of Canadian homeowners say they would have difficulty paying their mortgage if their payments were to increase by more than 10 per cent, says a new survey by Manulife Bank. Thirty-eight per cent of those polled say their mortgage bills could rise between one to five per cent before they would have financial difficulty; 20 per cent say they could sustain an increase in payments between six to 10 per cent before having trouble; and 14 per cent say any hike would be a…
  • After scare, Virgin Atlantic flight leaves Dubai for London

    Economic CTV News
    DUBAI, United Arab Emirates -- A Virgin Atlantic flight from Dubai to London that was evacuated over unspecified concerns earlier Thursday in the United Arab Emirates was cleared after a security check and took off for Britain, officials said. Source
  • No desk of your own: The office plan of the future?

    Economic CBC News
    Imagine coming to work every day and not being sure where to sit. You don't have a desk — instead, you need to figure out what's ahead in your day and what type of space you need, and then find a spot. Source
  • Is your condo board above board? Tips for evaluating condo governance

    Economic CBC News
    Condominium governance is in the spotlight after an investigation by CBC Toronto reporters unveiled questionable practices at a series of downtown Toronto buildings. Owners and property managers in those buildings say a group of people have aggressively sought control of the boards and budgets of multiple condos. Source
  • Hong Kong cops arrest 21 Uber drivers in latest crackdown

    Economic CTV News
    Hong Kong police launched a fresh crackdown Tuesday on Uber, arresting 21 drivers suspected of working for the ride-hailing giant in the Asian financial centre. It's the latest regulatory headache for Uber, which already is fighting a similar case in Hong Kong. Source
  • Hong Kong police arrest 21 Uber drivers in latest crackdown

    Economic CTV News
    Hong Kong police launched a fresh crackdown Tuesday on Uber, arresting 21 drivers suspected of working for the ride-hailing giant in the Asian financial centre. It's the latest regulatory headache for Uber, which already is fighting a similar case in Hong Kong. Source
  • Asian stocks drift in wake of Manchester blast

    Economic CTV News
    TOKYO - Asian shares were mostly higher in early trading Tuesday after police said they were treating an explosion in Manchester, England, that killed at least 19 people as a terror attack. Oil prices fell back after Monday's rally. Source