Westjet posts 2nd Quarter results and announces the addition of 767-300(ER)'s to its fleet in 2015

(WestJet)

Calgary-based WestJet next year will start flying Boeing 767-300ERs, the first widebody aircraft the low-cost carrier (LCC) will operate since its 1996 founding.

The announcement about the 767s came as WestJet reported second-quarter net income of C$51.8 million ($47.9 million), up 15.9% over a net profit of C$44.7 million in the prior-year period and the highest-ever June quarter profit in the airline’s history.

“We’ve got some good momentum and we’re going to keep our foot on the accelerator,” WestJet president and CEO Gregg Saretsky told analysts and reporters. The LCC plans to grow system capacity 6%-7% year-over-year for the full-year 2014.

WestJet operates an all-737NG fleet on mainline flying and last year launched regional affiliate WestJet Encore, which operates Bombardier Q400s. It will take delivery of four 767-300ERs by 2016, two of which will be operated on seasonal flights between Alberta and Hawaii starting in late 2015. In the 2016 summer, the 767-300ERs will be used “to expand overseas markets,” Saretsky said.

WestJet has not decided whether it will purchase or lease the 767s. “We’re not disclosing where they’re coming from other than to say that they’re used 767s that will be completely refurbished before going into service with WestJet,” Saretsky said.

Currently, WestJet contracts Thomas Cook Group to operate two 757-200s on seasonal Hawaii services, but that contract will expire in the spring of 2015 and WestJet will operate its own 767s on Hawaii flights starting in the 2015-2016 winter season.

The WestJet 767s will be configured with 262 seats. The Thomas Cook 757s are configured with 211 seats. “We have absolutely no trepidation about our ability to fill 262 seats,” Saretsky said.

WestJet’s second-quarter revenue grew 10.3% year-over-year to C$930.3 million and expenses increased 8.6% to C$851.9 million, producing operating income of C$78.4 million, up 17.9% over an operating profit of C$66.5 million in the 2013 June quarter.

Second-quarter traffic rose 5.5% year-over-year to 4.93 billion RPMs on a 5.2% increase in capacity to 6.19 billion ASMs, producing a load factor of 79.6%, up 0.2 point. Yield increased 4.5% to C$0.189.

(Aaron Karp - AWTOnline News)