WestJet's 17th consecutive quarter of profitability, but at significantly reduced levels

WestJet reported a steep reduction in profitability levels in 2Q2009 (three months ended 30-Jun-09), but still managed to continue its profitability trend for a seventeenth consecutive quarter with a net profit of USD8.5 million. Although this represented a 65.7% year-on-year reduction and the carrier’s lowest net profit level since 2Q2007, the results were stronger than expected in the current “daunting” operating environment, prompting a 3.4% increase in the carrier’s share price on the day of the release of the results. [1837 words]

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This report contains the following subheadings:

• Pricing environment showing no signs of improvement with air travel demand weakness here to stay
• Cost containment critical
• Healthy balance sheet of USD687 million 
• Continues effective seasonal deployment strategy; full year capacity growth lowered to 2-3% range
• Continues to grow to gain market share from rival
• Progressing with key product enhancements
• Outlook: Facing an onslaught of challenges but stronger than many in 2009 

This report contains the following charts and tables:

• WestJet revenue (CAD) and net profit margin (%): 4Q2006 to 2Q2009
• WestJet financial highlights for three months ended 30-Jun-09
• WestJet financial highlights for six months ended 30-Jun-09