WestJet reports June traffic results and updates second quarter outlook
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WestJet reports June traffic results and updates second quarter outlook
Good Morning All:
From Team Teal:
Airline increases traffic by 7.0 per cent year over year and improves on-time performance to 89.4 per cent
CALGARY, July 7, 2015 /CNW/ - WestJet today announced June 2015 traffic results with a load factor of 76.9 per cent, a decrease of 0.5 percentage points year over year. Revenue passenger miles (RPMs), or traffic, increased 7.0 per cent year over year with a more aggressive mix of lower fares, and capacity, measured in available seat miles (ASMs), was 7.6 per cent higher over the same period. WestJet achieved an on-time performance rate of 89.4 per cent in June, an improvement of 3.7 percentage points year over year. In the second quarter of 2015, the airline achieved a load factor of 78.1 per cent, a decrease of 1.5 percentage points year over year, and flew a record 5.0 million guests, a year-over-year increase of 3.9 per cent or approximately 184,000 additional guests.
"We are pleased with our traffic growth in the second quarter and are committed to keeping our costs low in order to provide affordable air travel for our guests," said WestJet President and CEO Gregg Saretsky. "I want to thank all WestJetters for their commitment to improving our on-time performance while continuing to provide our guests with the friendly caring service for which WestJet is known."
June 2015 June 2014 Change
Load factor 76.9% 77.4% (0.5 pts)
ASMs (billions) 2.187 2.032 7.6%
RPMs (billions) 1.682 1.572 7.0%
As a result of a substantively enacted increase in the Alberta provincial corporate income tax rate from 10 to 12 per cent, WestJet expects its effective tax rate for the full year 2015 to be 29 to 30 per cent, as compared to its previous guidance of 27 to 28 per cent. For the second quarter of 2015, WestJet expects its effective tax rate to be approximately 31 per cent;
RASM to be down approximately 5.7 per cent year over year, as compared to its previous guidance of a moderate year-over-year decline, with the difference primarily driven by a more aggressive mix of lower fares during the quarter and higher than expected ASMs;
CASM, excluding fuel and profit share to be up approximately 0.5 per cent year over year, as compared to its previous guidance of up 2.0 to 2.5 per cent, with the difference primarily driven by lower than expected airport operating costs and lower marketing, general and administration expenses, as well as higher than expected ASMs; and
Fuel cost per litre to be approximately 69 cents, at the high end of its previous guidance of 67 to 69 cents.
The outlook information provided above is a preliminary estimate only, is subject to completion of WestJet's quarterly financial close processes and has not been reviewed by the Company's auditors. Please see below for a cautionary statement with respect to the use of forward-looking information. WestJet does not intend to provide updates to guidance in future periods, except as may be required by law.
From Team Teal:
Airline increases traffic by 7.0 per cent year over year and improves on-time performance to 89.4 per cent
CALGARY, July 7, 2015 /CNW/ - WestJet today announced June 2015 traffic results with a load factor of 76.9 per cent, a decrease of 0.5 percentage points year over year. Revenue passenger miles (RPMs), or traffic, increased 7.0 per cent year over year with a more aggressive mix of lower fares, and capacity, measured in available seat miles (ASMs), was 7.6 per cent higher over the same period. WestJet achieved an on-time performance rate of 89.4 per cent in June, an improvement of 3.7 percentage points year over year. In the second quarter of 2015, the airline achieved a load factor of 78.1 per cent, a decrease of 1.5 percentage points year over year, and flew a record 5.0 million guests, a year-over-year increase of 3.9 per cent or approximately 184,000 additional guests.
"We are pleased with our traffic growth in the second quarter and are committed to keeping our costs low in order to provide affordable air travel for our guests," said WestJet President and CEO Gregg Saretsky. "I want to thank all WestJetters for their commitment to improving our on-time performance while continuing to provide our guests with the friendly caring service for which WestJet is known."
June 2015 June 2014 Change
Load factor 76.9% 77.4% (0.5 pts)
ASMs (billions) 2.187 2.032 7.6%
RPMs (billions) 1.682 1.572 7.0%
As a result of a substantively enacted increase in the Alberta provincial corporate income tax rate from 10 to 12 per cent, WestJet expects its effective tax rate for the full year 2015 to be 29 to 30 per cent, as compared to its previous guidance of 27 to 28 per cent. For the second quarter of 2015, WestJet expects its effective tax rate to be approximately 31 per cent;
RASM to be down approximately 5.7 per cent year over year, as compared to its previous guidance of a moderate year-over-year decline, with the difference primarily driven by a more aggressive mix of lower fares during the quarter and higher than expected ASMs;
CASM, excluding fuel and profit share to be up approximately 0.5 per cent year over year, as compared to its previous guidance of up 2.0 to 2.5 per cent, with the difference primarily driven by lower than expected airport operating costs and lower marketing, general and administration expenses, as well as higher than expected ASMs; and
Fuel cost per litre to be approximately 69 cents, at the high end of its previous guidance of 67 to 69 cents.
The outlook information provided above is a preliminary estimate only, is subject to completion of WestJet's quarterly financial close processes and has not been reviewed by the Company's auditors. Please see below for a cautionary statement with respect to the use of forward-looking information. WestJet does not intend to provide updates to guidance in future periods, except as may be required by law.
