WestJet has reported third quarter 2010 net earnings of $54 million, which marks its 22nd consecutive quarter of profitability and a 72% increase in net earnings, year over year.
WestJet reported an operating margin of 13.2%, compared to 12.8% in Q3 2009. WestJet's third quarter 2010 pre-tax margin was 11.1%, compared to 8.3% in the same period in 2009.
"We are very pleased with our third quarter results," said WestJet President and CEO Gregg Saretsky. "I thank WestJetters for their passion and commitment to providing outstanding guest service, which has boosted our bottom line. While delivering strong financial results, the quarter also involved tremendous effort leading up to the execution of two significant strategic milestones for us with the October announcement of WestJet's first code-share agreement, with Cathay Pacific Airways, and the first interline agreement with a U.S. carrier, American Airlines."
WestJet says it will continue to focus on ways to reduce costs and make its operations more efficient. The airline has now introduced self-serve baggage tagging at both Vancouver and Calgary airports, with plans to fully implement this capability at both Toronto Pearson and Edmonton International Airport by the end of 2010.
The airline plans fourth quarter capacity to increase 13 to 14% year over year which it expects to absorb while improving year-over-year revenue per available seat mile (RASM). WestJet is encouraged by the gradual recovery in pricing and the pace of current bookings.
WestJet is continuing its efforts to drive increased ancillary revenue. Effective today, for travel on or after January 19, 2011, WestJet will begin charging a $20 fee to guests checking a second bag on all flights. Concurrent with this change, WestJet will reduce the fee for the third and fourth bags from $75 to $50. "These fees are less than what other North American airlines are charging," added Gregg Saretsky.
This, we believe, strikes the right balance for our guests, our shareholders and our employees."
