WestJet Reports Q2 Net Loss Amid Labour Dispute and Higher Fuel Prices

WestJet today announced its second quarter results for 2018, with a net loss of $20.8 million, or $0.18 per fully diluted share.

This result compares with net earnings of $48.6 million, or $0.41 per fully diluted share reported in the second quarter of 2017.

Based on the trailing twelve months, the airline achieved a return on invested capital of 7.7 per cent, down from 9.8 per cent in the second quarter of 2017. Year-to-date, WestJet recorded net earnings of $16.4 million, or $0.14 per fully diluted share.

“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.” Ed Sims, WestJet President and CEO. “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.”

The Canadian airline avoided a strike by its pilots by agreeing to a mediated settlement process in May but uncertainty about the outcome of their dispute had a negative effect on WestJet’s bookings.

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