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UPDATE 1-Canadian airline WestJet's profit rises as fuel costs fall

Published 2015-07-28, 07:19 a/m
UPDATE 1-Canadian airline WestJet's profit rises as fuel costs fall
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(Adds details, shares)
July 28 (Reuters) - Canada's WestJet Airlines Ltd WJA.TO
reported a 19 percent rise in quarterly profit, helped by lower
fuel costs and addition of new routes.
Global crude prices LCoc1 CLc1 have nearly halved from
June last year, lowering costs for airlines and logistics and
shipping companies, among others.
WestJet's fuel costs fell 21.8 percent to C$214.9 million
($165.1 million) in the second quarter. Fuel is usually an
airline's largest variable cost, accounting for a third or more
of operating expenses.
Cost per available seat mile, a measure of how much an
airline spends to fly a passenger, fell 8.1 percent to 12.65
cents.
WestJet is trying to attract customers away from Air Canada
AC.TO by adding international routes and boosting capacity
while keeping fares low.
WestJet's revenue per available seat mile (RASM), an
indicator of an airline's efficiency calculated by dividing
operating income by available seat miles, fell 5.7 percent,
mainly due to lower fares.
The company's net earnings rose to C$61.6 million, or 49
Canadian cents per share, in the quarter ended June 30 from
C$51.8 million, or 40 Canadian cents per share, a year earlier.
ID:nPn3xLqMQ
Revenue rose 1.3 percent to C$942 million.
Calgary-based WestJet shares closed at C$22.67 on the
Toronto Stock Exchange on Monday. Up to Monday's close, the
stock had fallen 32 percent this year.
($1 = C$1.30)

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