WestJet reports solid third quarter net earnings of $39 million

Achieves 26^th consecutive profitable quarter and carries record number of guests

CALGARY, Nov. 9, 2011 /PRNewswire/ - WestJet (TSX: WJA) today announced third quarter results for 2011. The airline reported net earnings of $39.3 million, or 28 cents per share; compared to third quarter 2010 net earnings of $43.8 million or 30 cents per share.

"We had a solid third quarter in which we saw growth in both our yield and RASM, and we carried a record 4.2 million guests," said WestJet President and CEO Gregg Saretsky. "Despite significantly higher fuel costs, we delivered our 26^th consecutive quarter of profitability thanks to the tremendous work by WestJetters and their passion for contributing to, and sharing in, our ongoing success."

Operating highlights (stated in Canadian dollars)

*Financial information has been restated in accordance with International Financial Reporting Standards (IFRS).
**Refer to reconciliations in the accompanying tables for further information regarding adjustments.

In the third quarter of 2011, WestJet launched a code-share arrangement with KLM Royal Dutch Airlines and entered into three additional interline relationships. "Our airline partnership growth strategy remains on track as we continue to form alliances with leading airlines from around the world and connect new global traffic flows to our WestJet network," said Gregg Saretsky.

For the fourth quarter of 2011, WestJet expects comparable RASM growth to that achieved in the third quarter of 2011. "The broader economy continues to experience a great deal of volatility and consumer confidence measures echo that uncertainty, however, we are not seeing this impact reflected in our forward bookings in any significant manner," noted Gregg Saretsky. "We are optimistic that demand for air travel will remain healthy and are confident that with our high-value travel proposition and low-cost business model we will continue to deliver profitable results moving forward."

Jet fuel prices remained stubbornly high in the third quarter as WestJet reported fuel costs of $0.89 per litre, an increase of 27 per cent year over year. For the fourth quarter of 2011, WestJet is projecting fuel costs to range between $0.90 and $0.93 per litre. In terms of controllable costs, WestJet anticipates that full-year 2011 CASM, excluding fuel and employee profit share, will be up approximately one per cent, mainly attributable to higher maintenance expense compared to 2010.

In October, WestJet received three prestigious Canadian business awards for employee engagement and culture. WestJet placed third in Aon Hewitt's Best Employers in Canada study, and WestJet also placed among Canada's Top 100 Employers as measured in Mediacorp's annual study of the best workplaces in Canada. Also, WestJet was named one of Canada's Most Admired Corporate Cultures for Western Canada by Waterstone Human Capital. "There is an amazing level of employee engagement at WestJet and these accolades are not born from the work of any single individual but rather the teamwork and dedication of all WestJetters," commented Ferio Pugliese, WestJet's Executive Vice-President, People, Culture and Inflight Services.

Dividend declaration

WestJet's Board of Directors declared a cash dividend of $0.05 per common voting share and variable voting share for the fourth quarter of 2011, to be paid on December 30, 2011, to shareholders of record on December 14, 2011. 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.

Caution regarding forward-looking statements

Certain information set forth in this news release, including, without limitation, the information regarding WestJet's partnership growth strategy, RASM growth in the fourth quarter of 2011, our forward bookings and demand for air travel, fuel costs in the fourth quarter of 2011, 2011 CASM, excluding fuel and employee profit share, and our future profitability, is forward-looking information within the meaning of applicable Canadian 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 budget, forecasts and strategy, our fleet plan, realized jet fuel prices for October 2011 and forward-curve prices for November and December 2011, the expected exchange rate of the Canadian dollar to the U.S. dollar in the fourth quarter of 2011, along with available implementation plans, agreements and bookings, but may vary due to factors including, but not limited to, changes in consumer demand, changes in fuel prices, delays in aircraft delivery, changes in guest demand, 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 including WestJet's management's discussion and analysis and annual information form for the year ended December 31, 2010, which are available under WestJet's profile at www.sedar.com. Readers are cautioned that undue reliance should not be placed on forward-looking statements 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.

This news release contains disclosure respecting non-GAAP performance measures including, without limitation, and CASM, excluding fuel and employee profit share. These measures are included to enhance 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 quarters. 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 measures" in WestJet's management's discussion and analysis of financial results for the three and nine months ended September 30, 2011, which is available under WestJet's profile on SEDAR at www.sedar.com, for a further discussion of such non-GAAP measures and a reconciliation of such measures to GAAP.

Management's discussion and analysis of financial results and the condensed consolidated interim financial statements and notes for the three and nine months ended September 30, 2011, are available through the Internet in the Media and Investor Relations section of www.westjet.com or under WestJet's SEDAR profile at www.sedar.com.

Analyst conference call

WestJet will hold its quarterly analysts' conference call on Wednesday, November 9, 2011, at 9 a.m. MST (11 a.m. EST). President and CEO Gregg Saretsky and Executive Vice-President of Finance and CFO Vito Culmone will discuss WestJet's third quarter 2011 results and answer questions from financial analysts and members of the media. The conference call will be available in Toronto by calling 416-915-3239, in Vancouver by calling 604-638-5340 and across Canada and the United States through the toll-free telephone number 1-800-319-4610. The call can also be heard live through an Internet webcast accessible via the Media and Investor Relations section of www.westjet.com.

About WestJet

WestJet is Canada's favourite airline, offering scheduled service throughout its 71-city North American and Caribbean network. Inducted into Canada's Most Admired Corporate Cultures Hall of Fame and named one of Canada's best employers, WestJet pioneered low-cost flying in Canada. Named a J.D. Power 2011 Customer Service Champion, WestJet offers increased legroom, leather seats and live seatback television provided by Bell TV on its modern fleet of 96 Boeing Next-Generation 737 aircraft. With future confirmed deliveries for an additional 39 aircraft through 2018, WestJet strives to be one of the five most successful international airlines in the world.

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

Consolidated Statement of Financial Position 
(Stated in thousands of Canadian dollars)
(Unaudited)

Consolidated Statement of Cash Flows 
(Stated in thousands of Canadian dollars)
(Unaudited)

Operating Highlights
(Unaudited)

CASM, excluding fuel and employee profit share
(Stated in thousands of Canadian dollars, except per unit data)
(Unaudited)

WestJet excludes the effects of aircraft fuel expense and employee profit share expense to assess the operating performance of the business. Fuel expense is excluded from operating results due to the fact that fuel prices are impacted by a host of factors outside WestJet's control, such as significant weather events, geopolitical tensions, refinery capacity and global demand and supply. Excluding this expense allows WestJet to analyze its operating results on a comparable basis. Employee profit share expense is excluded from operating results due to its variable nature and excluding this expense allows greater comparability.

SOURCE WestJet

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