WestJet’s pre-tax Q3 earnings fall

Washington DC
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Canada's WestJet saw its pre-tax third quarter profit fall from C$62 million ($60.8 million) to C$55.3 million year-over-year as the carrier continued to battle what it deemed as stubbornly high fuel prices.

The carrier's net profit also fell year-over-year from C$43.8 million to C$39.2 million as fuel costs per litre jumped 27%.

Despite the rise in fuel expense WestJet joined other carriers in reporting a healthy 13.3% rise in revenue to C$775.3 million.

"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 WestJet CEO 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."

WestJet's unit costs grew 9.1% year-over-year for the third quarter and excluding fuel those costs increased 3.2%.

Cash balances for WestJet at the end of the quarter stood at C$1.3 billion.