The FINANCIAL — WestJet on February 7 announced its fourth quarter and year-end results for 2016, with full-year net earnings of $295.5 million, or $2.45 per diluted share.
This compares with the record net earnings of $367.5 million, or $2.92 per diluted share reported in the full-year 2015. The airline achieved its 47th consecutive quarter of profitability, reporting fourth quarter net earnings of $55.2 million, or $0.47 per diluted share compared to $63.4 million, or $0.51 per diluted share reported in the fourth quarter of 2015. For the full-year and in each quarter of 2016 the airline flew a record number of guests. Based on the trailing twelve months, the airline recorded a return on invested capital of 11.3 per cent, down 0.3 percentage points from the 11.6 per cent reported in the previous quarter, according to WestJet.
“In 2016 we continued to execute on our profitable growth strategies, which included the further expansion of WestJet Encore and the successful launch of wide-body transatlantic service. Our resilient business model delivered topline revenue growth, double-digit traffic growth, flew a record number of guests and achieved our second highest annual load factor in our history, despite facing economic weakness in Alberta,” said WestJet President and CEO Gregg Saretsky. “I want to thank our more than 12,000 WestJetters for their continued passion and commitment to safely providing our record number of guests with WestJet’s award-winning brand of friendly caring service.”
On February 6, 2017, WestJet’s Board of Directors declared a cash dividend of $0.14 per common voting share and variable voting share for the first quarter of 2017, to be paid on March 31, 2017, to shareholders of record on March 15, 2017. All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.
Board of Directors
WestJet appoints Brad Armitage as the new employee representative on the Board of Directors filling the vacancy created by the resignation of Antonio Faiola, effective February 6, 2017. Mr. Armitage succeeded Mr. Faiola as the Chair of the WestJet Employee Association in early 2017. Mr. Armitage first joined WestJet in 2011 and in 2012, he joined the employee association as a representative in Halifax, Nova Scotia. “For the last 17 years, we have invited WestJet’s employee association to put forward a nominee to join our Board and we are pleased to welcome Brad to the seat,” commented WestJet’s Chair of the Board, Clive Beddoe. “On behalf of the Board, I would also like to thank Antonio for his dedication and contributions over the past five years.”