Westjet 2004 Annual Report Download - page 8

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WESTJET ANNUAL REPORT 2004
8
We are disappointed with our financial performance in 2004. This
was an extremely challenging year for our airline and for our
industry as a whole as we had to deal with record high fuel prices,
rising operating costs and fierce competition. Despite these
challenges, we were able to grow our airline by 30%, maintain a
load factor of 70% and reduce our unit costs in many areas as we
adapted to these new market conditions.
Total revenue for the year was $1.06 billion compared with
$863.6 million in 2003, while expenses were up to $1.07 billion
from $749.1 million in 2003. Our loss from operations in 2004
totalled $9.9 million compared with earnings from operations of
$114.5 million in 2003. This loss included a $47.6 million write-
down in the fourth quarter on the early replacement of our fleet
of 737-200 aircraft due to their shortened revenue life.
The cumulative effect of the accelerated replacement
program and the weak operating environment led us to
a net loss for 2004 of $17.2 million, down from net
earnings of $60.5 million in 2003. Excluding the write-
down, we estimate we would have achieved net earnings
in 2004 of $18.4 million.
We reported a diluted loss per share for the year, including
the write-down, of 14 cents, down from diluted earnings
per share of 52 cents for full-year 2003. Our costs in 2004
were higher than in 2003, with cost per available seat mile
rising to 11.4 cents, excluding the write-down, from 10.9
cents in 2003.
President’s Message
to Shareholders