Westjet 2009 Annual Report Download - page 33

WestJet 2009 Annual Report 3
to successfully expand its sales and distribution channels and
that WestJet Vacations will be a key contributor to the future
success of our airline, referred to under the heading “Results
of Operations – Revenue” on page 12; our hedging expectations
and the intent to hedge anticipated jet fuel purchases, referred
to under the heading “Results of Operations – Aircraft Fuel” on
page 15; our sensitivity to changes in crude oil and fuel pricing,
referred to under the heading “Results of Operations – Aircraft
Fuel” on page 15; our expectation that aircraft maintenance costs
will increase as our fl eet ages, referred to under the heading
“Results of Operations – Maintenance” on page 17; our sensitivity
to the change in the value of the Canadian dollar versus the US
dollar, referred to under the heading “Results of Operations –
Foreign Exchange” on page 19; our expected effective tax rate
for 2010, referred to under the heading “Results of Operations
– Income Taxes” on page 20; our future aircraft deliveries,
referred to under the heading “Capital Resources” on page
23; our assessment that the outcome of legal proceedings in
the normal course of business will not have a material effect
upon our fi nancial position, results of operations or cash fl ows,
referred to under the heading “Liquidity and Capital Resources –
Contingencies” on page 24; our assessment of the impact of the
transition to International Financial Reporting Standards (IFRS),
referred to under the heading “Accounting – Future Accounting
Policy Changes” on page 35; our belief that we will approach
2010 the same way we approached 2009, referred to under the
heading “Outlook” on page 40; our plan that, as we head into
2010, we can leverage some of our new initiatives, referred to
under the heading “Outlook” on page 40; our expectation that the
fi rst quarter of 2010 should benefi t from our recent expansion
in the transborder and international market, referred to under
the heading “Outlook” on page 40; our expected fi rst-quarter
and full-year capacity increases for 2010, referred to under the
heading “Outlook” on page 40; our expectation that we will not
see the same substantial relief on costs in 2010 as we did in 2009,
referred to under the heading “Outlook” on page 40; our expected
fuel costs per litre, referred to under the heading “Outlook” on
page 40; our expectation of the impact that settlements of fuel
hedging contracts will have on our fuel costs per litre, referred
to under the heading “Outlook” on page 40; our expectation
of total capital expenditures for 2010, with the majority of the
spending related to aircraft deposits and rotables, referred to
Advisories
The following Management’s Discussion and Analysis of
Financial Results (MD&A), dated February 16, 2010, should be
read in conjunction with the cautionary statement regarding
forward-looking information and statements below, as well
as the consolidated fi nancial statements and notes thereto
as at and for the years ended December 31, 2009 and 2008.
The consolidated financial statements have been prepared
in accordance with Canadian generally accepted accounting
principles (GAAP). All amounts in the following MD&A are in
Canadian dollars unless otherwise stated. Certain prior-period
balances in the consolidated fi nancial statements have been
reclassifi ed to conform to current period’s presentation and
policies. References to “WestJet,” “the Company,” “we,” “us” or
“our” mean WestJet Airlines Ltd., its subsidiaries, partnership
and special-purpose entities, unless the context otherwise
requires. Additional information relating to WestJet fi led with
Canadian securities commissions, including periodic quarterly
and annual reports and Annual Information Forms (AIF), is
available on SEDAR at www.sedar.com and our website at www.
westjet.com. An additional advisory with respect to the use of
non-GAAP measures is set out on page 41 of this MD&A under
the heading “Non-GAAP Measures.”
Cautionary statement regarding forward-looking
information and statements
This MD&A offers our assessment of WestJet’s future plans
and operations and contains forward-looking statements
as defi ned under applicable Canadian securities legislation,
including our expectation that seasonal non-stop service will
commence to Kindley Field, Bermuda, and Samana, Dominican
Republic, in May and June 2010, respectively, referred to under
the heading “Overview” on page 6; our expectation that our new
reservation system will ensure we can properly support our
evolving business model and will enhance our ancillary revenue
opportunities and airline partnerships, referred to under the
headings “Fourth Quarter” on page 10 and “Outlook” on page
40; our belief that we are well on our way back to delivering
the world-class guest experience our guests deserve and have
come to expect, referred to under the heading “Fourth Quarter”
on page 10; our expectation that the new WestJet Vacations
Softvoyage reservation system will allow WestJet Vacations