WestJet Q3 profit fall, revenue fall more than analysts expected

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(The Canadian Press)

By The Canadian Press

CALGARY - WestJet Airlines Ltd. (TSX: WJA.TO) missed analyst estimates with its third-quarter results but remained profitable despite a 16 per cent drop in revenues during what's normally the busiest season for the travel industry.

The Calgary-based airline's net income fell to $31.4 million or 24 cents per diluted share in the July-September period, down from $57.9 million or 45 cents per diluted share in last year's third quarter.

WestJet's revenue fell to $600.6 million from $718.4 million. Analysts had expected revenues would be slightly higher in the quarter at $603 million, according to estimates compiled by Thomson Reuters.

WestJet chief executive Sean Durfy said airlines had used aggressive pricing to attract price-sensitive Canadians but the impact was partially offset by significantly lower fuel costs.

The airline also reported separately that its load factor had improved last month, compared with October 2008 - when the magnitude of the U.S.-led global recession began to be felt by Canadian consumers.

For October, WestJet's load factor increased to 77.3 per cent - up 1.5 percentage points from the year-earlier period.

For the July-September quarter, WestJet's load factor had been 81.4 per cent in 2008 but fell by 1.7 points to 79.7 per cent this year.

Shares in the airline were four cents lower at $11.05 in early trading on the Toronto stock market.