WestJet posts record high quarterly profit

This comes shortly after Air Canada was also crowing about its profits

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      A Calgary-based airline company generated a $138.4-million profit in the three months ending on September 30.

      That marks the largest quarterly gain in WestJet's history.

      Through the first nine months of this year, WestJet's net earnings are $235.1 million, which is slightly lower than the $240.3 million generated over the same period in 2016. 

      In management's discussion and analysis of the operating results, the company stated that this marked the 50th consecutive quarterly profit.

      Total revenue was up 8.1 percent in the quarter over the same period last year.

      This was due, in part, to a 5.8 percent increase in capacity, which is measured in "available seat miles", and a 7.9 percent boost in traffic, which is assessed by "revenue passenger miles".

      The improved financial results occurred even as WestJet's fuel costs per litre rose from 57 cents in the third quarter of 2016 to 62 cents per litre in the recent quarter.

      "The end of the third quarter of 2017 was marked by multiple severe hurricanes impacting several destinations in Texas, Florida and the Caribbean," the company reported. "WestJet actively responded to these threats by coordinating efforts to operate approximately 25 flights ahead of the storms' arrival, as well as multiple rescue flights post-storms to retrieve stranded WestJet guests, Canadians, and others.

      "We also transported much needed supplies to these areas by way of humanitarian flights, including 5,800 kilograms of humanitarian aid for the Canadian Red Cross comprised of water, non-perishable food items and tarps," the company continued. "The caring culture and values embodied by WestJetters were demonstrated through their efforts, working around the clock to coordinate and operate these flights and ensure our guests were returned to safety."

      WestJet's soon-to-be-launched ultra-low-cost-carrier will be called Swoop.

      The results were released just over a month after WestJet announced that its new ultra-low-cost carrier will be called Swoop.

      It will start selling flights in 2018.

      Meanwhile on October 25, Air Canada reported a record quarterly profit of $950 million on quarterly operating revenues of $4.9 billion.

      "As part of its assumptions, during the 2018 to 2020 period, Air Canada assumes moderate Canadian GDP growth, Canadian Consumer Price Index (CPI) growth of approximately 2 per cent, and an average annual wage rate increase of 2 per cent throughout the period," the airliner stated in a news release at the time. "Air Canada also assumes that the Canadian dollar will trade, on average, at C$1.32 per U.S. dollar and that the price of jet fuel will average 62 CAD cents per litre for 2018, 65 CAD cents per litre for 2019 and 67 CAD cents per litre for 2020."