Westjet 2001 Annual Report Download - page 9

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07
Our Financial Performance
In 2001, WestJet generated $37.2 million, a 23.0% increase in
net earnings from $30.3 million in 2000. Diluted earnings per
share for the year were 79 cents, up 14.5% from diluted
earnings per share of 69 cents for the year 2000. Total revenue
generated for 2001 was $478.4 million, up 43.9% from $332.5
million in 2000.
Our expenses for the fourth quarter and year ending 2001 were
$118.0 million and $419.0 million, up from $80.4 million and
$279.1 million in 2000, respectively. These increased costs
were attributable to the expanded operations of our growing
airline. Costs on an Available Seat Mile (ASM) basis declined
4.1% from 2000, evidencing the efficiencies we have achieved
in our operations on a year over year basis.
Although these results were partly realized as a result of a
9.3% increase in our average stage length year over year, it is
the unwavering determination of our people to maintain strict
cost controls and maximize efficiency that have had the
greatest impact. Given their understanding of the important
role they play in maintaining these costs as we grow, I am
confident that this trend will only continue in the years to
come.
Our Growth
2001 marked the first full year WestJetters occupied our new
Calgary head office. This facility has allowed us to consolidate
many of our departments under one roof, which were formerly
housed in multiple buildings. This move has allowed people
from different departments convenient access to each other,
and has further enhanced the team atmosphere for many of
WestJet’s Calgary people.
In February 2001, we also took possession of our new Calgary
hangar. This facility has room for up to six aircraft to be
maintained, and houses our 737-200 and 737-700 flight
simulators. In February 2002, we announced our intention to
purchase an additional 737-700 flight simulator, to be delivered
in 2003. This new simulator will be housed in our Calgary
hangar, upon completion of an expansion of the facility.
The expansion of our network and our fleet is a source of great
pride for all WestJetters. As a result of the commitment and
hard work of our people in 2001, we added four new Next
Generation 737-700 series aircraft and five new cities to our
network – Fort McMurray, Comox, Thompson, Sudbury, and
Sault Ste. Marie.
We are very pleased with the enthusiasm with which the public
has welcomed our expansion throughout the past year. In
2001, capacity, measured in Available Seat Miles (ASMs)
increased by 57.1% from 1.91 billion ASMs in 2000 to 3.00
billion ASMs. Our revenue passenger miles (RPMs) increased
53.9% from 1.45 billion in 2000 to 2.24 billion in 2001,
producing a load factor of 74.7%.
The expansion of our
network and our fleet is a
source of great pride for all
WestJetters.
MESSAGE TO SHAREHOLDERS