Due to the job decline in Alberta and the low Canadian dollar WestJet has had to change a few ways they do business, to stay on top.
The year-end results for the airline on Tuesday were released and the full-year net earnings for 2015 were up from 2014, but the company’s last quarter suffered majorly.
In 2015 WestJet had a net earnings of $367.5 million, or $2.92 per diluted share compared to 2014 when they had a net earnings of $317.2 million, or $2.46 per diluted share.
For the fourth quarter of 2015 the diluted earnings per share saw a decrease of 27 per cent, from $0.70 to $0.51 now. Even though it was a bad fourth quarter for the airline it still is their third best.
“Today we reported the third best fourth quarter in WestJet’s history to complete a record year in 2015. Notwithstanding the impact that recent economic weakness in Alberta has had on our results, our decision to increase our normal course issuer bid demonstrates our confidence in WestJet’s province business model and the financial strength of our airline,” WestJet president and CEO Gregg Saretsky said.
A new sale has popped up on the WestJet website, just as these low earning numbers were reported. There’s a 2-day sale where travellers can save on flights within Canada, the United States, Mexico, and Europe.
On Twitter WestJet posted future plans to help combat the low quarter.
We are evolving our business will help us weather this storm, by expanding #WestJetEncore; introducing wide-body aircraft; evolving... 1/3
— WestJet (@WestJet) February 2, 2016
...our fare bundles and ancillary revenue; continuing installation of #WestJetConnect; and developing our codeshare and airline... 2/3
— WestJet (@WestJet) February 2, 2016
...partnerships. -Gregg Saretsky, CEO #WestJetQ4 3/3
— WestJet (@WestJet) February 2, 2016
WestJet also announced on Tuesday that the Toronto Stock Exchange has approved an amendment to its normal course issuer bid. This means the maximum number of common voting shares and variable coting shares has increased.
The amount of shares that could be purchased under the normal course issuer bid was 4,000,000 and now it’s 6,000,000.
This increase will be effective February 4th.
“WestJet believes that, from time to time, the market price of its Shares may not reflect their underlying value. At such times, the purchase of Shares for cancellation may be advantageous to shareholders by increasing the value of the remaining Shares. The purchase of Shares may also offset the dilutive effect of the issuance of Shares pursuant to WestJet’s compensation plans,” an online media release stated.
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