WestJet has announced its second quarter results for 2018, with a net loss of $20.8 million. The loss ends a streak of 52 consecutive profitable quarters for the airline – an amazing 13 years without a quarterly deficit.
The disappointing result compares with net earnings of $48.6 million reported in the second quarter of 2017.
Based on the trailing twelve months, WestJet achieved a return on invested capital of 7.7%, down from 9.8% in the second quarter of 2017. Year-to-date, WS has recorded net earnings of $16.4 million.
"The impact of the threat of industrial action, in combination with the dramatic increase in fuel price and competitive capacity provided particularly significant challenges in the second quarter," said Ed Sims, WestJet President and CEO.
"While we are disappointed with these results, all WestJetters can take great satisfaction from the successful delivery of key strategic initiatives like Swoop and WestJet Link."
Total revenue for the quarter was up 2.8% to $1,087.6 million. And WestJet carried 6.276 milliion pax, up 6.2%. But a fuel price leap of 30.6%, a Cost Per Available Seat Mile increase of 8.7% and a 1.9% decline in Revenue Per Available Seat Mile drove results into negative territory.
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.