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)
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