WestJet Q2 net profit drops 41%, cites weak Alberta economy
WestJet reported a Q2 net profit of C$36.7m (US$28.2m), down 40.5% from net income of $61.6m in the 2015 June quarter, but the period did mark its 45th consecutive quarter in the black. The airline cited “continuing economic weakness” in the Alberta province, which is heavily tied to the oil industry, for the profit decline—the second straight quarter the carrier’s net profit fell. But president and CE Gregg Saretsky pointed to top line revenue growth—WestJet’s Q2 revenue increased 0.8% year-over-year to $949.3m—as a sign that the carrier’s “fundamentals remain strong” despite its home region’s economic issues. WestJet’s Q2 expenses increased 5.5% year-over-year to C$887.9m, partly the result of a $13.3m rise in maintenance costs tied to the launch of Boeing 767 flights to London Gatwick in May. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-07-27/unaligned/westjet-q2-net-profit-drops-41-cites-weak-alberta-economy
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WestJet Q2 net profit drops 41%, cites weak Alberta economy
WestJet reported a Q2 net profit of C$36.7m (US$28.2m), down 40.5% from net income of $61.6m in the 2015 June quarter, but the period did mark its 45th consecutive quarter in the black. The airline cited “continuing economic weakness” in the Alberta province, which is heavily tied to the oil industry, for the profit decline—the second straight quarter the carrier’s net profit fell. But president and CE Gregg Saretsky pointed to top line revenue growth—WestJet’s Q2 revenue increased 0.8% year-over-year to $949.3m—as a sign that the carrier’s “fundamentals remain strong” despite its home region’s economic issues. WestJet’s Q2 expenses increased 5.5% year-over-year to C$887.9m, partly the result of a $13.3m rise in maintenance costs tied to the launch of Boeing 767 flights to London Gatwick in May. <br/>
