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2005 WESTJET ANNUAL REPORT
13
CERTAIN INFORMATION SET forth in this document,
including management’s assessment of WestJet’s
future plans and operations, contains forward-
looking statements. These forward-looking statements
typically contain the words “anticipate,” “believe,” “estimate,”
“intend,
,”
“expect
,”
“may,
,”
“will
,”
“should,
,”
or other similar
terms. By their nature, forward-looking statements are
subject to numerous risks and uncertainties, some of
which are beyond WestJet’s control, including the impact
of general economic conditions, changing domestic and
international industry conditions, volatility of fuel prices,
terrorism, currency fluctuations, interest rates, competition
from other industry participants (including new entrants,
and generally as to capacity fluctuations and pricing
environment), labour matters, government regulation,
stock-market volatility and the ability to access sufficient
capital from internal and external sources. Readers are
cautioned that management’s expectations, estimates,
projections and assumptions used in the preparation of
such information, although considered reasonable at the
time of preparation, may prove to be imprecise and, as
such, undue reliance should not be placed on forward-
looking statements. WestJet’s actual results, performance or
achievements could differ materially from those expressed
in, or implied by, these forward-looking statements.
Additional information relating to WestJet, including
Annual Information Forms and financial statements, is
located on SEDAR at www.sedar.com.
To supplement its consolidated financial statements
presented in accordance with Canadian generally accepted
accounting principles (“GAAP”), the Company uses various
non-GAAP performance measures, including available
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL RESULTS
Forward-looking information
seat mile (“ASM”), cost per available seat mile (“CASM”)
defined as operating expense divided by available seat miles,
revenue per available seat mile (“RASM”) defined as total
revenue divided by available seat miles, and revenue per
revenue passenger mile (“yield”) defined as total revenue
divided by revenue passenger miles. These measures are
provided to enhance the user’s overall understanding of the
Company’s current financial performance and are included
to provide investors and management with an alternative
method for assessing the Company’s operating results in a
manner that is focused on the performance of the Company’s
ongoing operations and to provide a more consistent basis
for comparison between quarters. These measures are
not in accordance with or an alternative for GAAP and
may be different from measures used by other companies.
Overview
WestJet has emerged from many challenges during 2005.
The year began with escalating jet fuel prices and very
low yields that resulted from the irrational fare-pricing
strategies employed by a competitor.
Fuel prices continued to rise throughout the year but
were partially offset by increased yields. Our ability to
Mike Rodomar
X Team Agent
Masumi Jadwani
Analyst, Network Planning