Westjet 2002 Annual Report Download - page 26

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Dollars &
Sense
Tom Hughes, Lead, Furnishings,
poses beside another one of
WestJet’s driving forces.
The big drivers of WestJet’s expense
reduction in 2002 were our increase in flight
stage length, our much improved cost
performance on fuel and maintenance from
our growing number of new 737-700 aircraft,
and the significant increase again this year
in guest and travel agent bookings through
westjet.com. Because of our growth, a
comparison of year-over-year costs is better
served by an analysis of our expense
categories per ASM. It is interesting to note
that with the exception of general and
administrative costs, aircraft leasing expense,
and inflight expenditures, all other categories
showed substantial declines, and in total
resulted in an 8.8% cost per ASM reduction
from 14.0 cents in 2001 to 12.8 cents in 2002.
Expenses
Expenses
The big drivers of WestJet’s expense
reduction in 2002 were our increase in flight
stage length, our much improved cost
performance on fuel and maintenance from
our growing number of new 737-700 aircraft,
and the significant increase again this year
in guest and travel agent bookings through
westjet.com. Because of our growth, a
comparison of year-over-year costs is better
served by an analysis of our expense
categories per ASM. It is interesting to note
that with the exception of general and
administrative costs, aircraft leasing expense,
and inflight expenditures, all other categories
showed substantial declines, and in total
resulted in an 8.8% cost per ASM reduction
from 14.0 cents in 2001 to 12.8 cents in 2002.