Canada's WestJet Airlines reports fall in third quarter profits

Airline Industry Information, Oct 28, 2004

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WestJet Airlines has reported a slump of 35% in third quarter profits due to higher fuel prices, increased competition and its continued expansion into the US.

The Calgary, Canada-based airline reported earnings of CAD21m (CAD0.17 per share) for the period ending 30 September 2004 against a CAD32.3m profit in the same period in 2003. A spokesperson for the airline said that there were two major factors in the fall in profits, namely the record fuel prices and the poor yield environment in the US air market.

WestJet said that if fuel prices continued to rise it would have no choice but to raise fares.

The airline's load factor for the third quarter was up to 76.6% from 76.4% in 2003 with its revenue rising to CAD310.3m from CAD254.8m.

WestJet Airlines is facing two lawsuits from Air Canada and Jetsgo over alleged corporate espionage, reports The Canadian Press.

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