Hello Stan. With all the excitement happening over in the AC/CA camp, I thought I might share a few facts that I gleaned from a review of WestJet's SEDAR filings. sedar.com
No doubt about it, WestJet's making some very good waves.
Thomas
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Basic Facts
As of this date, WestJet Airlines operate thirteen Boeing 737 jet aircraft to the twelve western Canadian cities of Victoria, Vancouver, Abbotsford/Fraser Valley, Kelowna, Prince George, Calgary, Edmonton, Grande Prairie, Saskatoon, Regina, Winnipeg and Thunder Bay. Two additional Boeing 737-200 aircraft, purchased for approximately $10.0 million USD, will enter into service on October 1999 and January 2000.
Business strategy
WestJet's strategy calls for the addition of two to three aircraft per year as they develop a pattern of steady and sustainable growth. WestJet have generated steadily rising passenger capacity based on a low fare philosophy and their focus on servicing Western Canada.
Recent Statistics
July 1999 traffic statistics:
1. Revenue passenger miles (RPMs), July 1999: 28.9% higher, year-over-year (43.1% higher for the first seven months, year-over-year)
2. Available seat miles (ASMs), July 1999: 18.9% higher, year-over-year (37.3% higher for the first seven months, year-over-year)
3. Load factor, July 1999: 6% higher (2.9% higher for the first seven months, year-over-year)
Recent Financials (Q2 ended June 30, 1999)
WestJet's second quarter results featuring a 129% increase in net earnings from $1.3 million in the second quarter of 1998 to $2.9 million in the second quarter of 1999. Year to date net earnings nearly tripled from $1.8 million in 1998 to $5.1 million in 1999. Earnings from operations also increased 121% from $2.8 million from April to June 1998 to $6.1 million in the same period of 1999.
Operating costs per available seat mile (ASM) increased 13% during the second quarter of 1999 from 12.1 cents to 13.7 cents over the same period last year. This came on increased Nav Canada fees, higher cost of the US dollar and its impact on maintenance and fuel costs, and travel agent commissions, which are an increasingly higher portion of WestJet?s revenue base.
Earnings per share doubled from 6 cents in the second quarter of 1998 (basic and fully diluted) to 12 cents (basic) and 11 cents (fully diluted) for the same period of 1999. Earnings per share for the six months ended June 30 increased from 8 cents in 1998 (basic and fully diluted) to 21 cents (basic) and 20 cents (fully diluted) in 1999.
In the second quarter of 1999 WestJet added one operating aircraft and expanded service between Vancouver and Saskatoon and Vancouver and Prince George. As well, the airline announced its intention to carry out an initial public offering of $25 million in Common Shares in mid July, which has now been completed. |
