WestJet (Calgary) today announced its second quarter results for 2015, with net earnings of $61.6 million (all amounts in Canadian dollars) ($47.3 million US), or $0.49 per fully diluted share, as compared with the net earnings of $51.8 million, or $0.40 per fully diluted share reported in the second quarter of 2014.
WestJet achieved an on-time performance rate of 91.3 percent in the second quarter, a year-over-year improvement of 6.8 percentage points, placing WestJet as the top performing North American airline during the quarter. Based on the trailing twelve months, the airline achieved a return on invested capital of 16.0 per cent, up 0.2 percentage points from the 15.8 per cent reported in the previous quarter.
“I would like to congratulate our more than 10,000 WestJetters on these exceptional second quarter results which marked our 5th quarter of consecutive record adjusted net earnings,” said WestJet President and CEO Gregg Saretsky. “The second quarter is historically our most challenging quarter as capacity is transitioned from southern to domestic markets, so it is particularly rewarding to turn in a double digit margin this quarter. With another quarter of record earnings, and after having exceeded our ROIC target for 12 consecutive quarters, we are pleased to announce that we are increasing our target to 13 to 16 per cent, while continuing our commitment to our brand of friendly, caring service and affordable fares.”
On July 27, 2015, WestJet’s Board of Directors declared a cash dividend of $0.14 per common voting share and variable voting share for the third quarter of 2015, to be paid on September 30, 2015, to shareholders of record on September 16, 2015. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.
In other news, WestJet today announced it has begun rolling out its new inflight entertainment system featuring wireless Internet connectivity and more than 450 movies and television programs. Called WestJet Connect, the system will be activated on all of WestJet’s Boeing 767-300 ER aircraft and more than 30 percent of WestJet’s Boeing Next-Generation 737 aircraft by end of 2015, with installations on the majority of the 737 fleet expected to be completed in 2016.
Mobile devices and tablets using either iOS or Android operating systems will need the latest version of the WestJet app prior to boarding. Guests will also be able to access WestJet Connect using their laptops. Tablet rentals will be available on flights longer than three hours and 20 minutes for guests who do not have their own device. The WestJet app will take guests to the WestJet Connect home page where they can begin accessing content. Seats on WestJet Connect-equipped aircraft have 110-volt and/or USB power outlets, allowing guests the opportunity to charge or power their devices.
At launch, WestJet Connect will feature 85 movies and 329 TV programs, including expanded content in French. Content will be refreshed on a monthly basis and will be offered at no charge for an introductory period. The system’s Internet connectivity will be available at an introductory price of $7.99 plus applicable taxes for the duration of each flight.
Once installation is complete, WestJet Connect will be available on all WestJet flights operated on Boeing Next-Generation 737s or 767-300 ER aircraft.
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