WestJet Third-Quarter Profit Beats Estimates as Revenue Advances

WestJet Airlines Ltd. (WJA) reported third-quarter profit that beat analysts’ estimates and said it plans to reach its goal of cutting C$100 million ($95.8 million) in annual costs one year ahead of schedule.

Net income fell 7.8 percent to C$65.1 million, or 50 cents a share, from C$70.6 million, or 52 cents, a year earlier, the Calgary-based company said today in a statement. The average of estimates compiled by Bloomberg was 49 cents a share. Revenue rose 6.7 percent to C$924.8 million, compared with the C$924.8 million average projection, as WestJet flew 4.94 million passengers -- a 7.1 percent increase.

Canada’s second-largest carrier said it has identified and is implementing measures that will allow it to reduce costs by C$100 million in 2014. The airline also expects measures such as a new fare structure, which was put in place earlier this year, to help bolster annual revenue by as much as C$80 million.

WestJet fell 0.4 percent to C$27.30 in Toronto yesterday. The shares have gained 38 percent this year, compared with a 7.5 percent advance for Canada’s benchmark Standard & Poor’s/TSX Composite Index. (SPTSX)

To contact the reporter on this story: Frederic Tomesco in Montreal at tomesco@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.