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/ Building
momentum
/ 2012 Annual Report

Table of contents

  • Page 1
    / 2012 Annual Report / Building momentum

  • Page 2
    ... Airline partnerships WestJet Encore Business traveller WestJet Rewards WestJet Vacations Technology advances Community investment Meet our team WestJetters and our culture Corporate information Management's discussion and analysis of financial results 2012 Consolidated financial statements...

  • Page 3
    ... employee share purchase plan, making them owners, as well, and aligned with the continued success of the airline. We are enthusiastic about our new initiatives in 2013-including the launch of WestJet Encore- and know that success will continue to come from our culture of caring for our guests and...

  • Page 4
    ...North America, Central America, and the Caribbean. Our growth in airline partnerships is helping us build a virtual global network. During 2012, we increased the total number of partnerships to 30, including eight code-share agreements, as Delta Air Lines, Korean Air, WestJet 2012 Annual Report /4

  • Page 5
    ...on American Airlines, and by making hotel and car rental bookings directly on our website. We increased the value offered to holders of the WestJet RBC World Elite MasterCard, including a welcome bonus of 250 WestJet dollars and an annual $99 round-trip companion flight, making this credit card even...

  • Page 6
    ... seat miles (millions) Segment guests (thousands) * The results for 2010-2012 are presented in accordance with the International Financial Reporting Standards (IFRS) and the 2009 results and prior are reported under Canadian Generally Accepted Accounting Principles (GA AP). WestJet 2012 Annual...

  • Page 7
    ...consecutive year of profitability, ranking us among the top North American airlines. ($ in thousands, except per share data) Consolidated financial information* Revenue Earnings before income taxes Net earnings Cash and cash equivalents Earnings per share Basic Diluted $ $ $ $ $ $ 2012 2011 2010...

  • Page 8
    ... Boeing 737s. This growth will continue as we begin taking delivery of our Q400 fleet for the launch of WestJet Encore. Our list of airline partners continues growing-we added 13 new interline agreements in 2012, providing even more travel options for our guests, and enhanced WestJet Rewards while...

  • Page 9
    ... way for WestJet to grow our network. In 2012, four existing relationships (Delta Air Lines, Korean Air, China Eastern Airlines and British Airways) were evolved to code-shares and we implemented 13 new interline partnerships-bringing our total global partnerships to 30 as of year-end. In 2012, we...

  • Page 10
    ... WestJet destinations currently not serviced by our Boeing 737 fleet. With our experience building a successful low-cost airline and providing guests with remarkable experiences, we expect WestJet Encore to duplicate the success WestJet had when it started 17 years ago. WestJet 2012 Annual Report...

  • Page 11
    ...to international destinations. In 2013, business travellers looking for more conveniences will be able to take advantage of our fare bundle options, with features such as extra legroom, priority screening and boarding, waived fees and ticket refunds to credit cards. WestJet 2012 Annual Report / 11

  • Page 12
    ... they fly on American Airlines, as well as when they book hotel stays and car rentals online at westjet.com. In 2012, we also introduced the new WestJet RBC World Elite MasterCard, offering additional benefits including a welcome bonus of 250 WestJet dollars and an annual round-trip companion flight...

  • Page 13
    ... survey conducted by Leger Marketing in 2012 found that WestJet Vacations is now Canada's preferred vacation company. We scored higher than our competitors on guest service, guest satisfaction, overall satisfaction, likelihood to recommend, and most trusted company. WestJet 2012 Annual Report / 13

  • Page 14
    ..., or change/cancel a reservation. We're also making it easier for guests to take advantage of our new offerings, including fare bundles. Hotels and car rentals can be booked directly through our website and added mobile notifications increase our ability to connect with guests. WestJet 2012 Annual...

  • Page 15
    ... flight from Toronto to New York-LaGuardia for an action-packed day of sightseeing in the Big Apple. In September, WestJetters participated in the Ronald McDonald House Home for Dinner program by hosting a backyard barbecue at 14 Ronald McDonald houses across Canada. WestJet 2012 Annual Report...

  • Page 16
    ... employee share purchase program, which means we treat our guests and our business as though we are owners, not just employees. This engagement leads to great input in our initiatives-in early 2012, an overwhelming 91 per cent of WestJetters voted in favour of the decision to launch WestJet Encore...

  • Page 17
    ... Officer / Stock exchange listing Shares in WestJet stock are publicly traded on the Toronto Stock Exchange under the symbols WJA and WJA.A. / Investor relations contact information Phone: 1-877-493-7853 Email: [email protected] / WestJet headquarters 22 Aerial Place NE Calgary, AB...

  • Page 18
    Ma anagement's Discussion an nd Analysis o f Financial Re esults 2012 WestJet 2012 Annual Report / 18

  • Page 19
    ... P Please refer to pa age 55 of this MD&A M for a recon nciliation of non-GAAP and addit tional GAAP mea asures, including cost per availab ble seat mile (CASM), excluding fuel and empl loyee profit shar re; return on inv vested capital (R ROIC); free cash flow; free cash flow per share; and diluted...

  • Page 20
    ... airlin ne partnership agreements a and the launch of ten new de estinations, w we announced the addition of o WestJet Enco ore to the Wes nd we commen nced strategic service enhanc cements to stJet family an a attract the business traveller and provide guests g with mo ore options whe en flying...

  • Page 21
    ...our plans to o move forwar rd with the la aunch of a new w low-cost, reg gional airline in n the second half h of 2013. N Named in October 2012, Wes stJet Encore w will leverage W WestJet's brand d, balance shee et strength and d low-cost stru ucture, to deliv ver on four key y strategies des signed...

  • Page 22
    ... CASM, excluding g fuel and emplo oyee profit share (cents) Fuel consumptio on (litres) Fuel costs per litre (dollars) Segment guests s Average stage le ength (miles) Utilization (hour rs) Number of full-t time equivalent employees e at period end Fleet size at per riod end (i) 2012 3,427,409 9 340...

  • Page 23
    ...F For the year en nded Decembe er 31, 2012, ou ur overall capac city increased by 4.1 per cen nt. During 2012, 43.1 per cent of ASMs w were allocated to the transbo order and international mark kets, which rep presents an 11 1.6 per cent in ncrease in thos se markets v versus 2011. On O average, lo...

  • Page 24
    ...WestJet t RBC Masterc card program. These improve ements were o offset by a these bookings y year-over-year reduction in ch hange and cancel fees attribu utable to our re ecord load fact tor that limited our guests' op pportunities to change their r flights, and lo ower second bag and excess baggage...

  • Page 25
    ...mber 31, 2012. . We will contin nue to mitigate e the risk of enue managem s changing m movements in fuel prices thr rough our reve ment strategy and may re-v visit our hedgin ng program as m markets and co ompetitive cond ditions warrant. T The following table t presents the financial impact and st...

  • Page 26
    ... in thousands) S Salaries and bene efits E Employee share purchase plan E Employee profit share s S Share-based pay yment plans P Presentation on the t Consolidated Statement of Ea arnings: Airport operatio ons Flight operations and navigational charges Sales and distr ribution Marketing, gen neral...

  • Page 27
    ... attributab ble to higher ea arnings eligible e for profit shar re versus the p prior year. S Share-based payment p plan ns W We have three e equity-settled d share-based payment plan ns whereby eit tions, restricte ed share units (RSUs) or ther stock opt p performance sh hare units (PS SUs) may...

  • Page 28
    ... 1, 2012 and July 1, 2013 c corporate incom me tax rate red ductions and freezing the corporate income e tax rate at 1 11.5 per cent. As a result, ou ur effective c consolidated tax x rate remaine ed consistent in n comparison to o the prior year r. F For 2013, we anticipate that our o annual effe...

  • Page 29
    ...) CASM, excluding g fuel and employ yee profit share (cents) Fuel consumptio on (litres) tre (dollars) Fuel costs per lit Segment guests A ength (miles) Average stage le Utilization (hours s) Number of full-ti ime equivalent employees at peri iod end s WestJet 2012 Annual Report s s â", / 29

  • Page 30
    ... ation D Depreciation and amortization A Aircraft leasing In nflight M Maintenance E Employee profit share T Total operating ex xpenses T Total, excluding fuel and profit share Change 1.4% 7.0% 4.4% 2.2% 13.5% 1.2% 1.3% 7.4% (18.8%) 110.0% 3.4% 3.2% s WestJet 2012 Annual Report s s â", / 30

  • Page 31
    ... compared t to 9.03 cents in n 2011 due m mainly to incre eases in airpo ort operations, , marketing, general g and a administration and inflight o offset by a d decrease in m maintenance CA ASM. A Aircraft fuel In the fourth qu uarter of 2012, , aircraft fuel expense e increas sed by 4.5 per cent...

  • Page 32
    ... r represents the percentage of ghts originally scheduled. Ou ur bag ratio re epresents the number of f flights completed from flig d delayed or lost baggage claim ms made per 1,0 000 guests. Three months ended d December 31 1 2012 2011 Chang ge 64.0 0% 77.9% (13.9 9 pts.) 98.5 5% 99.5% (1.0 0 pts...

  • Page 33
    ... avera age shares o outstanding as a result of our share buy-bac ck program. A At December 31, 3 2012 restricted cash consisted of $43.2 2 million (201 1 - $41.4 mill lion) for cash held in trust b by WestJet V Vacations; $7.6 6 million (2011 1 - $6.6 millio on) for security of guarantee; a and...

  • Page 34
    ... of 0.9 per cent. Our r 2012 free cas sh flow per s share was $3.33 as compared d to $3.19 per share in 2011, a year-over-ye ear increase of f 4.4 per cent. This increase w was mainly d due to the yea ar-over-year reduction in our r diluted weigh hted average s shares outstand ding as a resu ult of...

  • Page 35
    ... p to 80 per cen nt of the delive ery price with a term to mat turity of 12 y years, payable in quarterly ins stallments. W We are actively y reviewing fina ancing opportu unities, includin ng a sale lease eback structure e, for the three e Boeing 737-8 800 aircraft s scheduled for delivery d in the...

  • Page 36
    ... 100th Boeing Next-G Generation 737 7 aircraft, a celebrated milesto one for the C Corporation. In n total for 2012 2, we took delivery of three new 737-800 aircraft, two o owned and one e leased, to en nd the year e age of 6.7 ye w with a registere ed 737 fleet of f 100 aircraft with w an average...

  • Page 37
    ... accounts. In t e event that all other o contracting airlines wit thdraw from th he arrangemen nts and we rem e member, we e would be mained as sole r responsible for the costs of th he fuel facility corporations, c in ncluding debt s service requirem ments. At Nove ember 30, 2012, the nine f fuel...

  • Page 38
    ..., any y shares purcha ased under the 2013 normal course issue er bid will be purchased p on the open mark ket through th e facilities of t the TSX at the e prevailing m market price at the time of the transactions. Shares acquir red under such bid will be can ncelled. s WestJet 2012 Annual Report...

  • Page 39
    ... ely one Canadia an dollar to o one US dollar. We W anticipate our o first quarte er and full-year 2013 CASM, e excluding fuel a and employee p profit share, to o be up two to three per cen nt compared to o 2012. This inc corporates cost with the launch h of WestJet En ncore. ts associated...

  • Page 40
    ...are review wed and addre essed in light of changes to o market conditions and our r operating a activities. F Fuel risk T The airline indu ustry is inheren ntly dependent upon jet fuel to t operate and d, therefore, we e are exposed to the risk of v volatile fuel p prices. Fuel prices are affect ted...

  • Page 41
    ... ne party to a financial instrument will cau use a financia l loss for the other party by y failing to d discharge an ob bligation. At De 2 our credit exposure con nsisted primarily of the carry ying amounts o of cash and ecember 31, 2012, c cash equivalent ts, restricted ca ash, accounts receivable...

  • Page 42
    ... in 2012 and in 2 2011. Our low cost c structure has h been one of o our core stra ategic advantag ges and facilita ates our ability to offer our gu uests lower f fares, which in turn allows us to increase ma arket share and yield, and im mpact our grow wth strategy. Th herefore, the p price of fuel...

  • Page 43
    ... ons relating to such an airlin ne, which could d result in the occurrence o of unforeseen u cos sts that may ad dversely affect our profitability y. T This initiative will w also require e substantial at ttention from our o manageme ent team. This diversion of m management at ttention, as w well as...

  • Page 44
    ... c culture of carin ng and compas ssion for our guests g and fell low employees s that sets us apart from ou ur competitors. . Failure to m maintain our un nique corporate e culture or gue est experience could adverse ely affect our bu usiness and fin nancial results. s WestJet 2012 Annual Report...

  • Page 45
    ... cial markets, an nd business and political environments than n Canada and the United States, and therefo ore present g greater political, economic an nd operational risks. We emphasize legal co ompliance and have impleme ented policies, procedures a and certain ong going training of employees with...

  • Page 46
    ... n exchange rat tes and interna ational political events. A sig gnificant portio on of an airline e's costs, such as labour, a aircraft ownersh hip and facilitie es charges, can nnot be easily adjusted a in the e short term to respond to ma arket changes. s WestJet 2012 Annual Report s s â", / 46

  • Page 47
    ... on our business s or the marke et price of our securities. How wever, any s significant redu uction in guest ur network cou uld have a ma aterial adverse e effect on ou ur business, re esults from t traffic on ou o operations and financial condi ition. s WestJet 2012 Annual Report s s â", / 47

  • Page 48
    ... and inform mation from v various sources s including ven ndors, industry practice, and company-spec cific history and d experience. E Expected usefu ul lives and r residual values are reviewed annually a for any change to es stimates and as ssumptions. s WestJet 2012 Annual Report s s â", / 48

  • Page 49
    ... free rate of app proximately 1.1 16% (2011 - 1.20%) which is s equal to the w weighted avera age remaining term of approx ximately 38 f m months until ca ash outflow (20 011 - 43 month hs). ( (iii) Fair value of awards and d breakage asso ociated with WestJet W Rewards s E Estimates are required...

  • Page 50
    ... of vario ous market f forces. Consequ uently, the fair r value of our derivative instr ruments are su ubject to regullar changes in fair value each h reporting p period. Please refer r to 2012 Results R of Oper rations - Foreig gn exchange an nd Liquidity and nd Capital Reso ources - Aircraf...

  • Page 51
    ... there eto, for the ye ears ended D December 31, 2012 2 and 2011 1 as their effect tive dates fall within w annual p periods beginning subsequen nt to the curren nt reporting p period. Proposed standard IFRS 10 - F Consolidated Financial Statements Descriptio on Buil lds on the exist ting principles...

  • Page 52
    ...in February y 2013, referred d to under the e heading West stJet Encore o on page 21 ou ur plans to mak ke the WestJet Hero Holiday an a annual even nt, referred to under the head ding WestJette ers on page 2 21; our expecta ation that the fleet reconfiguration project is expected to o be fully comp...

  • Page 53
    ... plans to make WestJet Hero Holiday an a annual even nt is manag gement strateg gy and that we e may re-visit o our hedging based on the Corpora ation's long-t term commu unity progra am is based on n our risk mana agement policie es; nitiatives; investment in ï,· Our es stimated sensitivity to fuel...

  • Page 54
    ... leg: A segment of a fli ight involving a stopover, cha ange of aircraft t or change of a airline from one landing site t to another. S Segment gue est: Any perso on who has be een booked to occupy a sea at on a flight leg and is not t a member o of the crew a assigned to the e flight. A Average...

  • Page 55
    .... F Free cash flow w per share: Free F cash flow divided by the e diluted weight ted average nu umber of share es outstanding. O Operating cas sh flow per sh hare: Cash flow w from operations divided by y diluted weight ted average sh hares outstanding. s WestJet 2012 Annual Report s s â", / 55

  • Page 56
    ... trailing 12 2 months foreign ex xchange gain of $1 1,061 (December 31, 2011 - gain of $ $2,485) and the tra ailing 12 (ii) At December 31, 2012, other inclu months non-op perating loss on der rivatives of $6,512 (December 31, 201 11 - loss of $6,052 2). s WestJet 2012 Annual Report s s â", / 56

  • Page 57
    ... averag ge number of sha ares outstanding - diluted D Diluted free cash h flow per share 2012 721,634 (218,116) (51,191) 452,327 135,964,118 3.33 2011 566, ,460 (61,2 265) (57,1 108) 448, ,087 140,638, ,659 3 3.19 Cha ange 155,174 (156,851) 5,917 4,240 (4,674,541) 4.4% s WestJet 2012 Annual Report...

  • Page 58
    Consolidated Financial Statements and Notes For the years ended December 31, 2012 and 2011 WestJet 2012 Annual Report / 58

  • Page 59
    ... overall stewardship and governance of the Corporation, including ensuring manag ement fulfills its responsibility for financial reporting and internal control, and reviewing and approving the consolidated financial statements. The Board carries out this responsibility principally through its Audit...

  • Page 60
    ...as at December 31, 2012 and December 31, 2011, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards. Chartered Accountants Calgary, Canada February 5, 2013 WestJet 2012 Annual Report / 60

  • Page 61
    ... of Earnings For the years ended December 31 (Stated in thousands of Canadian dollars, except per share amounts) Note 2012 2011 Revenue: Guest Other Expenses: Aircraft fuel Airport operations Flight operations and navigational charges Sales and distribution Marketing, general and administration...

  • Page 62
    Consolidated Statement of Financial Position As at December 31 (Stated in thousands of Canadian dollars) Note 2012 2011 Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable Prepaid expenses, deposits and other Inventory Non-current assets: Property and equipment ...

  • Page 63
    ...hedge settlements Loss on fuel derivatives (Gain) loss on disposal of property and equipment Share-based payment expense Deferred income tax expense Finance income Finance cost Unrealized foreign exchange (gain) loss Change in non-cash working capital Change in restricted cash Change in other assets...

  • Page 64
    ... Shares repurchased Purchase of shares pursuant to compensation plans Net earnings 13 12 668,978 (37,549) (80,305) (220) 242,392 793,296 1,472,305 1,370,217 Total shareholders' equity The accompanying notes are an integral part of the consolidated financial statements. WestJet 2012 Annual Report...

  • Page 65
    ... taxes taxes taxes of of of of of of $904 (2011 - $(870)). $319 (2011 - $(1,250)). $199 (2011 - $135). $(108) (2011 - $nil). $nil (2011 - $(679)). $nil (2011 - $682). 239,999 The accompanying notes are an integral part of the consolidated financial statements. WestJet 2012 Annual Report / 65

  • Page 66
    ...travel packages. The Corporation's shares are publicly traded on the Toronto Stock Exchange. The principal business address is 22 Aerial Place N.E., Calgary, Alberta, T2E 3J1 and the registered office is Suite 2400, 525 - 8 Avenue SW, Calgary, Alberta, T2P 1G1. (a) Basis of presentation These annual...

  • Page 67
    ... to new cards issued is recognized in other revenue immediately upon activation. (iv) Non-refundable guest credits The Corporation issues future travel credits to guests for flight changes and cancellations. Where appropriate, travel credits are also issued for flight delays, missing baggage and...

  • Page 68
    ... 31, 2012 and 2011 (Stated in thousands of Canadian dollars, except share and per share amounts) 1. Statement of significant accounting policies (continued) (e) Financial instruments (continued) Other financial liabilities are measured at amortized cost using the effective interest method and...

  • Page 69
    Notes to Consolidated Financial Statements For the years ended December 31, 2012 and 2011 (Stated in thousands of Canadian dollars, except share and per share amounts) 1. Statement of significant accounting policies (continued) (i) Inventory Inventories are valued at the lower of cost and net ...

  • Page 70
    ... 2012 and 2011 (Stated in thousands of Canadian dollars, except share and per share amounts) 1. Significant accounting policies (continued) (m) Maintenance provisions and reserves Provisions are made when it is probable that an outflow of economic benefits will be required to settle a present legal...

  • Page 71
    ...per share. The calculation of pot ential dilutive voting shares assumes the exercise of all dilutive instruments at the average market price during the period with the proceeds received from exercise assumed to reduce the number of dilutive voting shares otherwise issued. WestJet 2012 Annual Report...

  • Page 72
    ... and 2011 (Stated in thousands of Canadian dollars, except share and per share amounts) 1. Statement of significant accounting policies (continued) (s) Critical accounting judgments and estimates The preparation of these consolidated financial statements in conformity with IFRS requires management...

  • Page 73
    Notes to Consolidated Financial Statements For the years ended December 31, 2012 and 2011 (Stated in thousands of Canadian dollars, except share and per share amounts) 1. Statement of significant accounting policies (continued) (s) Critical accounting judgments and estimates (continued) Estimates (...

  • Page 74
    ... Consolidated Financial Statements For the years ended December 31, 2012 and 2011 (Stated in thousands of Canadian dollars, except share and per share amounts) 2. New accounting standards and interpretations The IASB and International Financial Reporting Interpretations Committee (IFRIC) have issued...

  • Page 75
    ... in light o f changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain the capital structure, the Corporation may, from time to time, purchase shares for cancellation pursuant to normal course issuer bids, issue new shares, pay dividends and adjust...

  • Page 76
    ... statement of earnings: Note Salaries and benefits (i) Employee share purchase plan Employee profit share (ii) Share-based payment expense Presented on the consolidated statement of earnings as follows: Airport operations Flight operations and navigational charges Sales and distribution Marketing...

  • Page 77
    ... under development Cost 2,510,811 130,543 130,675 110,245 135,822 15,462 4,221 2,574 3,040,353 The net book value of the property and equipment pledged as collateral for the Corporation's long -term debt was $1,380,412 as at December 31, 2012 (2011 - $1,403,422). WestJet 2012 Annual Report / 77

  • Page 78
    Notes to Consolidated Financial Statements For the years ended December 31, 2012 and 2011 (Stated in thousands of Canadian dollars, except share and per share amounts) 8. Intangible assets January 1 2012 15,136 17,782 âˆ' 875 33,793 January 1 2011 10,867 âˆ' âˆ' 2,151 13,018 Net additions 3,985 âˆ' ...

  • Page 79
    ...% to reflect the weighted average remaining term of approximately 38 months until cash outflow. A certain number of operating aircraft leases also require the Corporation to pay a maintenance reserve to the lessor. Maintenance reserves are either refunded when qualifying maintenance is performed or...

  • Page 80
    ... 31 2012 Deferred tax liability: Property and equipment Deferred partnership income Net unrealized gain on derivatives designated in a hedging relationship Deferred tax asset: Share issue costs Net unrealized loss on derivatives designated in a hedging relationship Non-capital losses(i) Credit carry...

  • Page 81
    ... who may also fix the designations, rights, privileges, restrictions and conditions attached to the shares of each s eries of non-voting shares and non-voting preferred shares. There are no non-voting shares or non-voting preferred shares issued and outstanding. WestJet 2012 Annual Report / 81

  • Page 82
    ...Canadian dollars, except share and per share amounts) 12. Share capital (continued) (b) Issued and outstanding 2012 Number Common and variable voting shares: Balance, beginning of year Issuance of shares pursuant to compensation plans Shares repurchased Balance, end of year Amount Number 2011 Amount...

  • Page 83
    ... 12. Share capital (continued) (c) Stock option plan (continued) Changes in the number of options, with their weighted average exercise prices, are summarized below: 2012 Number of options Stock options outstanding, beginning of year Granted Exercised Forfeited Expired Stock options outstanding, end...

  • Page 84
    ... For the years ended December 31, 2012 and 2011 (Stated in thousands of Canadian dollars, except share and per share amounts) 12. Share capital (continued) (d) Key employee and pilot plan The Corporation has a key employee and pilot (KEP) plan, whereby restricted share units (RSU) are issued to key...

  • Page 85
    ... share-based payment expense for the Corporation's equity-based plans: 2012 Stock option plan Key employee and pilot plan Executive share unit plan Total share-based payment expense Presented on the consolidated statement of earnings as follows: Flight operations and navigational charges Marketing...

  • Page 86
    ... employee and pilot - Restricted share units Executive - Restricted share units Executive - Performance share units Weighted average number of shares outstanding - diluted For the year ended December 31, 2012, 734,448 employee stock options (2011 - 3,646,624) and 8,932 (2011 - nil) restricted share...

  • Page 87
    ...liability): Cash and cash equivalents Foreign exchange derivatives Fuel derivatives Interest rate derivatives Deposits During the years ended December 31, 2012 and 2011, there were no transfers between level 1, level 2 and level 3 classified assets and liabilities. WestJet 2012 Annual Report / 87

  • Page 88
    ...Canadian dollars, except share and per share amounts) 16. Financial instruments and risk management (continued) (a) Fair value of financial assets and financial liabilities (continued) Cash and cash equivalents: Consist of bank balances and short-term investments, primarily highly liquid instruments...

  • Page 89
    ...) Market Risk (continued) (i) Fuel price risk (continued) Under the Corporation's fuel price risk management policy, the Corporation is permitted to hedge a portion of its future anticipated jet fuel purchases for up to 36 months. During 2012, the Corporation ceased its fuel hedging program...

  • Page 90
    ... statement of financial position: Statement presentation Accounts payable and accrued liabilities Other long-term liabilities Hedge reserves (before tax impact) December 31 2012 611 268 (879) December 31 2011 112 420 (532) Fair value Fair value Unrealized loss WestJet 2012 Annual Report...

  • Page 91
    ...088 800 December 31, 2011 1,243,605 48,341 34,122 28,386 12,273 Cash and cash equivalents (i) Restricted cash(i) Accounts receivable (ii) Deposits (iii) Derivative financial assets (iv) (i) Consist of bank balances and short-term investments with terms of up to 92 days. Credit risk associated with...

  • Page 92
    ...88) the advance ticket sales balance. The Corporation aims to maintain a current ratio, defined as current assets over current liabilities, of at least 1.00. As at December 31, 2012, the Corporation's current ratio was (2011 - ). As at December 31, 2012, the Corporation has not been required to post...

  • Page 93
    ..., 2012, $7,562 (2011 - $6,610) letters of guarantee were issued under the facility by assigning restricted cash of $7,562 (2011 - $6,610). 18. Related parties (a) Subsidiaries and partnership The consolidated financial statements of WestJet Airlines Ltd., the parent company, include the accounts of...

  • Page 94
    ... operations, fuel rebates, marketing programs and ancillary revenue products and services. Industry receivables include receivables relating to air travel, vacation packages, travel agents, interline agreements with other airlines and partnerships. All significant counterparties are reviewed and...

  • Page 95
    ...2012 281,574 101,379 41,117 1,509 34,424 460,003 December 31 2011 244,822 23,433 22,020 112 16,722 307,109 Note Accounts payable and accrued liabilities: Trade and industry Taxes payable WestJet Rewards Derivatives Other Other current liabilities: Advanced ticket sales Non-refundable guest credits...