WestJet reports Q2 net loss of $20.8 million

posted on 1st August 2018 by Justin Burns
WestJet reports Q2 net loss of $20.8 million

Canadian low-cost carrier WestJet has announced in the second quarter (Q2) of 2018 it made a net loss of $20.8 million – as the threat of industrial action, rising fuel prices and competitive capacity impacted results.

This compared with net earnings of $48.6 million in Q2 of 2017 and revenue in Q2 was up 2.8 per cent to $1,087.6 million, up on the $1,058.3 million in Q2 last year. Year-to-date, WestJet recorded net earnings of $16.4 million.

Passenger numbers reached 6,276,226 million in Q2, a 6.2 per cent rise on Q2 2017 and the load factor was up 1.1 percentage points in Q2 to 83.9 per cent, compared to Q2 last year. Fuel prices shot up in Q2 30.6 per cent a litre.

WestJet president and chief executive officer, Ed Sims said: “The impact of the threat of industrial action, in combination with the dramatic increase in fuel price and competitive capacity provided particularly significant challenges in the second quarter.”

He added: “While we are disappointed with these results, all WestJetters can take great satisfaction from the successful delivery of key strategic initiatives like Swoop and WestJet Link.”