WestJet reported second quarter net earnings of $11.5 million. Overall, the performance was impacted by the one-time non-recurring impairment loss related to costs previously capitalised for the aiRES project. (8/3/2007)
The project impacted the company’s earning from operations by $31.9 million ($22.2 million after tax).
The airline reported earnings of $22.4 million in the same period last year. WestJet’s year-to-date net earnings were a record $41.4 million compared to $35.2 million in the same period of 2006, an increase of over 17 percent.
Excluding the reservation system write-down, the airline’s earnings from operations produced record second quarter and year-to-date operating margins of 12.1 percent for the quarter and 11.6 percent for the first six months of 2007.
Sean Durfy, WestJet President said excluding the impact of the non-cash aiRES write-down, our second quarter earnings from operations increased by over 58 percent.
Diluted earnings per share were nine cents for the quarter compared to 17 cents in the same period last year, a decrease of 47.1 percent. Year to date, diluted earnings per share were 32 cents up from 27 cents in 2006, an increase of 18.5 percent.
Second quarter revenue rose to $504.8 million, compared to $424.0 million in the second quarter of 2006, an improvement of over 19 percent. Year to date, revenue increased to $984.0 million compared to $810.7 million in 2006, an increase of 21.4 per cent.
The company announced in July that Durfy would take over as CEO from co-founder Clive Beddoe, who is to remain as Chairman.