Westjet 2008 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2008 Westjet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

20 WestJet 2008 Annual Report
OVERVIEW
2008 was a very successful year for WestJet. In particular,
the fi rst half of the year produced very strong fi nancial
results, and the second half of the year was signifi cantly
impacted by unprecedented conditions in the fi nancial and
credit markets, and exceptionally high and volatile fuel
prices. Despite the unfavourable economic environment,
we continued to produce consistent and strong fi nancial
results, as evidenced by one of the best earnings before tax
(EBT) margins of any large North American airline, positive
cash fl ows from operations, a signifi cant cash position and
a healthy balance sheet. Amid the turmoil in the economy,
execution of our strategy was key as we added new
destinations and routes, and increased capacity and RPMs
while driving down our CASM, excluding fuel and employee
profi t share. Our code-sharing agreement with Southwest
Airlines, signed in 2008, is an important step forward in the
continued execution of our strategic plan to become one
of the top fi ve airlines in the world by 2016. Our dedicated
and enthusiastic WestJetters continued to deliver a
world-class guest experience, contributing to the success
of our airline.
2008 Highlights
• Increased total revenues to $2,549.5 million, an increase
of 19.9 per cent over 2007.
• Recorded RASM of 14.88 cents, an increase of 1.8 per
cent over 2007, while growing capacity by 17.8 per cent
year over year.
•
Maintained strong cost controls by reducing CASM,
excluding fuel and employee profi t share, to 8.28 cents
from 8.55 cents in 2007, a decrease of 3.2 per cent.
• Recorded an EBT margin of 10.0 per cent in 2008, down
1.1 points from 2007.
• Realized net earnings of $178.1 million, a decrease of 7.6
per cent from 2007.
• Diluted earnings per share were $1.37, a decrease of 6.8
per cent compared to 2007.
• Adjusted for the reservation system impairment and
favourable income tax rate reduction in 2007, net earnings
decreased by 1.8 per cent to $178.1 million in 2008 from
$181.3 million in 2007, and diluted earnings per share
decreased to $1.37 from $1.39 in 2007, representing a
change of 1.4 per cent.
• Generated cash fl ows from operations of $460.6 million,
a decrease from $541.1 million in 2007.
Please refer to page 50 of this MD&A for a reconciliation
of the non-GAAP measures listed above, including CASM,
excluding fuel and employee profi t share, net earnings and
diluted earnings per share adjusted for the impact of the
reservation system impairment and favourable income
tax rate reduction in 2007, to the nearest measure under
Canadian GAAP.
Our guests come fi rst. So it’s going to take a lot
more than the worst winter weather in 40 years to
stop from us from doing what’s right for them.
Kerry Leandre, Customer Service Shift Lead, Airports
WestJetter since 2002