Westjet 2005 Annual Report Download - page 18

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YOUR OWNERS’ MANUAL
are reported in Canadian dollars. This information should
be read in conjunction with the consolidated financial
statements for the year ended December 31, 2005 and
related notes thereto.
YEAR 2005 COMPARED TO YEAR 2004
Revenue
Although the revenue environment remains competitive,
the demise of Jetsgo has allowed yield (revenue per
passenger mile) and load factor to begin to return to more
rational levels. This is evidenced by the fact that even with
an increase in capacity of 19.1% as measured by available
seat miles (“ASMs”), we were able to increase our yield by
3.6% to 17.5 cents in full-year 2005 from 16.9 cents in 2004.
As a result of this improved performance, guest revenues
increased 29.7% from 2004 to $1.21 billion in 2005. Total
revenue, which includes guest revenue, charter and other
revenue, and interest income, increased to $1.40 billion,
a 32.1% improvement over the $1.06 billion recorded in
2004. Charter and other revenue growth continue to
outpace guest revenue growth; charter revenue totalled
$126.6 million in 2005 representing an increase of 54.4%
compared with 2004 revenue of $82.0 million. However,
Expenses
the expansion of scheduled flights into Las Vegas, which
had previously been flown on a charter basis for a tour
operator, constraints on our own aircraft availability and
the impact of hurricanes in 2005 caused limited growth in
this segment of our business in the latter part of 2005.
In 2005, we increased capacity, as measured by ASMs,
by 19.1% and increased the number of revenue passenger
miles (“RPMs”) by 26.8% to 10.7 billion and 8.0 billion
respectively compared to 9.0 billion and 6.3 billion in
2004. This performance resulted in an increased annual
load factor from 70.0% in 2004 to 74.6% in 2005 – a level
not seen since 2001.
Ancillary revenue, generated primarily from fees
associated with guest itinerary changes, excess baggage
fees and headset sales, contributed $38.1 million to other
revenue in 2005 as compared to $25.6 million in 2004.
Cargo revenue, which increased 28.1% from $6.4 million
in 2004, added $8.2 million to other revenue in 2005.
We also recognized $2.0 million in net retail sales and
for bounty on newly activated credit cards during the
year through our BMO Mosaik®MasterCard®*with the
AIR MILES®†Reward Option. In 2004, no revenue was
recognized with respect to this program.
2005 2004 2003 2002 2001
Aircraft fuel 3.32 2.69 2.27 2.40 2.83
Airport operations 2.05 1.94 1.78 1.90 2.13
Flight operations and navigational charges 1.72 1.66 1.53 1.63 1.76
Sales and marketing 1.16 0.95 0.84 0.96 1.03
Depreciation and amortization(1) 1.00 0.88 0.92 1.13 1.15
Maintenance 0.71 0.88 1.10 1.76 2.41
General and administration 0.65 0.68 0.67 0.86 0.70
Aircraft leasing 0.62 0.46 0.64 0.77 0.51
Interest expense 0.52 0.49 0.36 0.16 0.16
Inflight 0.50 0.49 0.47 0.59 0.54
Customer service 0.26 0.26 0.32 0.43 0.59
12.51 11.38 10.90 12.59 13.81
(1) For comparative purposes, impairment loss of $47,577,000 included in depreciation and amortization expense has been excluded from unit-cost calculations for 2004.
Cost per available seat mile (CASM) (in cents)
®Registered trade-marks of Bank of Montreal. Patent Pending. ®*Bank of Montreal is a licenced user of the registered trademark and design of MasterCard International Inc. ®†Trademarks of AIR MILES International Trading B.V. Used under license by Loyalty Management Group Canada Inc.