WestJet (TSX: WJA) today announced its fourth quarter and year-end results for 2015, with record full-year net earnings of $367.5 million, or $2.92 per diluted share. This compares with the adjusted net earnings1 of $317.2 million, or $2.46 per diluted share reported in the full-year 2014, up 16 per cent and 19 per cent, respectively. For the fourth quarter, the airline reported diluted earnings per share of $0.51, down 27 per cent from $0.70 reported last year. These fourth quarter 2015 results include a pre-tax loss on foreign exchange of $10.1 million.
This represents WestJet's 43rd consecutive quarter of profitability and based on the trailing twelve months, the airline achieved a return on invested capital of 15.3 per cent, compared with the 16.1 per cent reported in the previous quarter, and within WestJet's target range of 13 to 16 per cent.
"Today we reported the third best fourth quarter in WestJet's history to complete a record year in 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," said WestJet President and CEO Gregg Saretsky. "My thanks go out to our more than 11,000 WestJetters for all their hard work in driving our continuing success as we look forward to celebrating WestJet's 20th birthday in 2016, a year which will see the launch of our exciting new wide-body service to London Gatwick."
| Operating highlights (stated in Canadian dollars) | ||||||
| Q4 2015 | Q4 2014 | Change | Full-year 2015 | Full-year 2014 | Change | |
| Net earnings (millions) | $63.4 | $90.7 | (30.1%) | $367.5 | $284.0 | 29.4% |
| Adjusted net earnings (millions)1 | $63.4 | $90.7 | (30.1%) | $367.5 | $317.2 | 15.9% |
| Diluted earnings per share | $0.51 | $0.70 | (27.1%) | $2.92 | $2.20 | 32.7% |
| Adjusted diluted earnings per share1 | $0.51 | $0.70 | (27.1%) | $2.92 | $2.46 | 18.7% |
| Total revenues (millions) | $958.7 | $994.4 | (3.6%) | $4,029.3 | $3,976.6 | 1.3% |
| Operating margin | 11.8% | 14.0% | (2.2 pts) | 14.1% | 12.0% | 2.1 pts |
| ASMs (available seat miles) (billions) | 6.525 | 6.378 | 2.3% | 26.902 | 25.584 | 5.2% |
| RPMs (revenue passenger miles) (billions) | 5.114 | 5.081 | 0.6% | 21.526 | 20.829 | 3.3% |
| Load factor | 78.4% | 79.7% | (1.3 pts) | 80.0% | 81.4% | (1.4 pts) |
| Segment guests | 4,893,020 | 4,826,149 | 1.4% | 20,281,376 | 19,651,977 | 3.2% |
| Yield (revenue per revenue passenger mile) (cents) | 18.75 | 19.57 | (4.2%) | 18.72 | 19.09 | (1.9%) |
| RASM (revenue per available seat mile) (cents) | 14.69 | 15.59 | (5.8%) | 14.98 | 15.54 | (3.6%) |
| CASM (cost per available seat mile) (cents) | 12.97 | 13.40 | (3.2%) | 12.86 | 13.68 | (6.0%) |
| CASM, excluding fuel and employee profit share (cents)* | 10.04 | 9.21 | 9.0% | 9.46 | 9.15 | 3.4% |
| (1) | Full-year 2014 adjusted net earnings exclude an after-tax non-cash loss of $33.2 million recorded in the third quarter of 2014 associated with the previously disclosed sale of 10 of WestJet's oldest Boeing 737 aircraft. Refer to reconciliations in the accompanying tables for further information regarding calculations. |
