WestJet reports its second-highest ever third quarter net earnings of $119.4 million

CALGARY, Oct. 28, 2019 /CNW/ - WestJet (TSX: WJA) today announced its third quarter results for 2019, with net earnings of $119.4 million, or $1.02 per fully diluted share compared with net earnings of $70.1 million, or $0.61 per fully diluted share reported in the third quarter of 2018, a year-over-year increase of 70.4 per cent and 67.2 per cent respectively.

"We are very pleased with these remarkable results, achieving our highest ever third quarter load factor, second-highest ever third quarter net earnings and the third-highest quarterly net earnings in WestJet's history," said Ed Sims, WestJet President and CEO. "These results would not have been possible without the continued energy and dedication of all 14,000 WestJetters in delivering our award-winning brand of friendly and caring service through the busy summer period. I also want to thank the almost seven million guests who travelled with us in the third quarter for their continued support."

Operating highlights* (stated in Canadian dollars)

Dividend declaration
On October 28, 2019, WestJet's Board of Directors declared a cash dividend of $0.14 per common voting share and variable voting share for the fourth quarter of 2019, to be paid on December 31, 2019, to shareholders of record on December 18, 2019. 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.

Third quarter conference call
Given WestJet's proposed arrangement with an affiliate of Onex Corporation (TSX: ONEX), WestJet will not be hosting an earnings call or webcast to discuss its third quarter results. For further information, please contact WestJet Investor Relations.

Caution regarding forward-looking information
Certain information set forth in this news release, including, without limitation, information regarding our dividend is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond WestJet's control. The forward-looking information contained in this news release is based on WestJet's current forecasts and strategy, the expected demand environment, the utilization of our fleet, the forward-curve for jet fuel price, the expected exchange rate of the Canadian dollar to the U.S. dollar, agreements and bookings, but may vary due to factors including, but not limited to, changes in guest demand, changes in fuel prices, delays in aircraft delivery, general economic conditions, competitive environment, ability to effectively implement and maintain critical systems and other factors and risks described in WestJet's public reports and filings which are available under WestJet's profile at sedar.com. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. WestJet does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.

Non-GAAP measures
This news release contains disclosure respecting non-GAAP performance measures including, without limitation, CASM, excluding fuel and employee profit share and return on invested capital. These measures are included to enhance the overall understanding of WestJet's current financial performance and to provide an alternative method for assessing WestJet's operating results in a manner that is focused on the performance of WestJet's ongoing operations, and to provide a more consistent basis for comparison between reporting periods. These measures are not calculated in accordance with, or an alternative to, GAAP and do not have standardized meanings. Therefore, they may not be comparable to similar measures provided by other entities. Readers are urged to review the section entitled "Reconciliation of non-GAAP and additional GAAP measures" in WestJet's management's discussion and analysis of financial results for the three and nine months ended September 30, 2019 which is available under WestJet's profile on SEDAR at sedar.com, for a further discussion of such non-GAAP measures and a reconciliation of such measures to GAAP. The financial information accompanying this news release was prepared in accordance with International Financial Reporting Standards unless otherwise noted.

Management's discussion and analysis of financial results and consolidated financial statements and notes for the three and nine months ended September 30, 2019, are available through the Internet in the Investor Relations section of westjet.com or under WestJet's SEDAR profile at sedar.com.

About WestJet
Together with WestJet's regional airlines, WestJet Encore and WestJet Link, we offer scheduled service to 110 destinations in North America, Central America, the Caribbean and Europe and to more than 250 destinations in over 20 countries through our airline partnerships. WestJet Vacations offers affordable, flexible vacations to more than 60 destinations and the choice of more than 800 hotels, resorts, condos and villas.  Members of the WestJet Rewards program earn WestJet dollars on flights, vacation packages and more. Members use WestJet dollars towards the purchase of flights and vacations packages to any WestJet destination with no blackout periods, and have access to Member Exclusive fares offering deals to WestJet destinations throughout our network and those of our partner airlines.

WestJet is proud to be recognized for three consecutive years as Best Airline in Canada (2017-19) and awarded among travellers' favourite Mid-Sized Airlines in North America (2019). From 2017-2018, WestJet was also awarded among travellers' favourite Mid-Sized and Low-Cost Airlines in North America. The airline was also recognized among the Economy Class winners in North America, 2018. All awards are based on authentic reviews from the travelling public on TripAdvisor, the world's largest travel site. We are one of very few airlines globally that does not commercially overbook.

WestJet is publicly traded on the Toronto Stock Exchange (TSX) under the symbol WJA. For more information about everything WestJet, please visit westjet.com.

Recent recognition includes:
2019/2018/2017 Best Airline in Canada (TripAdvisor Travellers' Choice awards for Airlines)
2019 Winner Among Mid-Sized Airlines in North America (TripAdvisor Travellers' Choice awards for Airlines)
2019 Number-One Ranked Canadian Airline Loyalty Program in Member Engagement (Bond Brand Loyalty)
2019/2018 Number-One-Ranked Airline Credit Card in Canada (Rewards Canada)
2018/2017 Winner Among Mid-Sized and Low Cost Airlines – North America (TripAdvisor Travellers' Choice awards for Airlines)
2018 Winner – Economy, North America (TripAdvisor Travellers' Choice awards for Airlines)
2018 North America's Best Low-Cost Airline (Skytrax)
2018/2017/2016 Canada's Most Trusted Airline (Gustavson School of Business at the University of Victoria)

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Condensed Consolidated Statements of Earnings
(Stated in thousands of Canadian dollars, except per share amounts)
(Unaudited)

Condensed Consolidated Interim Statements of Financial Position
(Stated in thousands of Canadian dollars)
(Unaudited)

Condensed Consolidated Interim Statements of Cash Flows
(Stated in thousands of Canadian dollars)
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