WJA - <span class="simulate_din_font">WestJet reports first quarter net earnings record</span> (CAD 0.06)

Company: Westjet Airlines Ltd.
Stock Name: WJA
Amount: CAD 0.06
Announcement Date: 01/05/2012
Record Date: 11/06/2012

Dividend Detail:

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Airline achieves net earnings of $68 million, up 42 per cent

WestJet selects Bombardier Q400 NextGen aircraft for new regional
airline

CALGARY, May 1, 2012 /CNW/ - WestJet (TSX: WJA) today announced its
first quarter results for 2012. The airline reported record first
quarter net earnings of $68.3 million, or $0.49 per diluted share; up
from the net earnings of $48.2 million, or $0.34 per diluted share,
reported in the first quarter of 2011. This represents WestJet's 28^th consecutive quarter of profitability. WestJet's operating cash flow per
share for the first quarter of 2012 was $1.87, an increase of 31 per
cent year over year. Based on the trailing twelve months, the airline
achieved a return on invested capital of 10.8 per cent, up from the
10.1 per cent reported last quarter.

"We are extremely pleased with the record first quarter results and our
margin expansion as revenue growth outpaced elevated fuel costs. We
achieved our highest first quarter load factor, improved the overall
yield and made good progress towards our return on invested capital
target," said WestJet President and CEO Gregg Saretsky. "I thank
WestJetters for their contributions to these great results and for
providing that remarkable guest experience which helps distinguish us
as Canada's preferred airline."

Today, WestJet also announced it has selected the Bombardier Q400
NextGen as the aircraft for its new, low-cost regional airline that is
expected to launch as early as the second half of 2013. "This aircraft
selection marks another significant milestone for WestJet as we enter
into what we know will be a successful, long-lasting relationship with
Bombardier, another great Canadian company," noted Gregg Saretsky.

Operating highlights (stated in Canadian dollars)
��	Q1 2012��	Q1 2011	Change
Net earnings (millions)	$68.3	$48.2	41.6%
Diluted earnings per share	$0.49	$0.34	44.1%
Total revenues (millions)	$891.0	$772.4	15.3%
Operating margin	11.9%	10.3%	1.6 pts.
Operating cash flow per share*	$1.87	$1.43	30.8%
ASMs (available seat miles) (billions)	5.690	5.230	8.8%
RPMs (revenue passenger miles) (billions)	4.721	4.290	10.0%
Load factor	83.0%	82.0%	1.0 pts.
Segment guests	4,230,415	3,899,108	8.5%
Yield (revenue per revenue passenger mile) (cents)	18.87	18.00	4.8%
RASM (revenue per available seat mile) (cents)	15.66	14.77	6.0%
CASM (cost per available seat mile) (cents)	13.80	13.24	4.2%
CASM, excluding fuel and employee profit share (cents)*	8.95	8.91	0.4%

*Refer to reconciliations in the accompanying tables for further
information regarding calculations.

"Revenue growth exceeded our expectations this quarter and contributions
to the top-line increase are coming from the ongoing improvement in our
business offering, our airline partnership strategy, the strength of
WestJet Vacations and increases in ancillary revenue," commented Gregg
Saretsky. WestJet achieved its highest ancillary revenue per guest of
$8.39 this quarter which lifted the net earnings per guest to
approximately sixteen dollars. The airline expects RASM growth to
continue into the second quarter, but at a slightly moderated pace than
the RASM growth achieved in the first quarter of 2012.

WestJet now projects its 2012 full-year CASM, excluding fuel and
employee profit share will be up 1.5 to 2.5 per cent. This is mainly
attributable to higher revenue-related expenditures resulting from an
improved revenue outlook and increased airport operation costs
resulting from an increase in operations at higher cost airports such
as New York City, Chicago and Toronto. For the second quarter of 2012,
the airline projects its fuel costs will range between $0.95 and $0.97
per litre.

Dividend declaration

WestJet's Board of Directors declared a cash dividend of $0.06 per
common voting share and variable voting share for the second quarter of
2012, to be paid on June 29, 2012, to shareholders of record on June
13, 2012. All dividends paid by WestJet are, pursuant to subsection
89(14) of the Income Tax Act, designated as eligible dividends, unless
indicated otherwise. An eligible dividend paid to a Canadian resident
is entitled to the enhanced dividend tax credit.

Caution regarding forward-looking statements

Certain information set forth in this news release, including, without
limitation, the information regarding the launch of the regional
airline in the second half of 2013, RASM growth in the second quarter
of 2012, fuel costs in the second quarter of 2012 and CASM, excluding
fuel and employee profit share, for the full-year is forward-looking
information within the meaning of applicable Canadian securities laws.
By its nature, forward-looking information is subject to numerous risks
and uncertainties, some of which are beyond WestJet's control. The
forward-looking information contained in this news release is based on
WestJet's current budget, forecasts and strategy, our fleet plan,
realized jet fuel prices for April 2012 and forward-curve prices for
May and June 2012, the expected exchange rate of the Canadian dollar to
the U.S. dollar in the second quarter of 2012, along with available
implementation plans, agreements and bookings, but may vary due to
factors including, but not limited to, changes in consumer demand,
changes in fuel prices, delays in aircraft delivery, changes in guest
demand, general economic conditions, competitive environment, ability
to effectively implement and maintain critical systems and other
factors and risks described in WestJet's public reports and filings
which are available under WestJet's profile at www.sedar.com. Readers are cautioned that undue reliance should not be placed on
forward-looking statements as actual results may vary materially from
the forward-looking information. WestJet does not undertake to update,
correct or revise any forward-looking information as a result of any
new information, future events or otherwise, except as may be required
by applicable law.

This news release contains disclosure respecting non-GAAP performance
measures including, without limitation, CASM, excluding fuel and
employee profit share, operating cash flow per share, return on
invested capital and net earnings per guest. These measures are
included to enhance overall understanding of WestJet's current
financial performance and to provide an alternative method for
assessing WestJet's operating results in a manner that is focused on
the performance of WestJet's ongoing operations, and to provide a more
consistent basis for comparison between quarters. These measures are
not calculated in accordance with, or an alternative to, GAAP and do
not have standardized meanings. Therefore, they may not be comparable
to similar measures provided by other entities. Readers are urged to
review the section entitled "Reconciliation of non-GAAP and additional
GAAP measures" in WestJet's management's discussion and analysis of
financial results for the three months ended March 31, 2012, which is
available under WestJet's profile on SEDAR at www.sedar.com, for a further discussion of such non-GAAP measures and a
reconciliation of such measures to GAAP.

��

Management's discussion and analysis of financial results and condensed
consolidated interim financial statements and notes for the three months ended March 31, 2012, are available through the
Internet in the Media and Investor Relations section of www.westjet.com or under WestJet's SEDAR profile at www.sedar.com.

Analyst conference call

WestJet will hold its quarterly analysts' conference call today, May 1,
2012, at 8 a.m. MDT (10 a.m. EDT). President and CEO Gregg Saretsky and
Executive Vice-President of Finance and CFO Vito Culmone will discuss
WestJet's first quarter 2012 results and answer questions from
financial analysts and members of the media. The conference call will
be available in Toronto by calling 416-915-3239, in Vancouver by
calling 604-638-5340 and across Canada and the United States through
the toll-free telephone number 1-800-319-4610. The call can also be
heard live through an Internet webcast accessible via the Media and
Investor Relations section of www.westjet.com.

Annual general meeting (AGM)

WestJet will hold its AGM at 2 p.m. MDT (4 p.m. EDT) today on May 1,
2012 at WestJet's Calgary Campus at 22 Aerial Place NE. The AGM webcast
will be available live in the Media and Investor Relations section of www.westjet.com.��

About WestJet

WestJet is Canada's preferred airline, offering scheduled service
throughout its 76-city North American and Caribbean network. Inducted
into Canada's Most Admired Corporate Cultures Hall of Fame and named
one of Canada's best employers, WestJet pioneered low-cost flying in
Canada. Named a J.D. Power 2011 Customer Service Champion, WestJet
offers increased legroom and leather seats on its modern fleet of 98
Boeing Next-Generation 737 aircraft. With future confirmed deliveries
for an additional 37 aircraft through 2018, WestJet strives to be one
of the five most successful international airlines in the world.

Connect with WestJet on Facebook at www.facebook.com/westjet

Follow WestJet on Twitter at www.twitter.com/westjet

Subscribe to WestJet on YouTube at www.youtube.com/westjet

Condensed Consolidated Statement of Earnings

For the three months ended March 31

(Stated in thousands of Canadian dollars, except share and per share
amounts)

(Unaudited)

��		��	��	��
��		��	2012	2011
��		��	��	��
Revenues:		��	��	��
��	Guest	��	802,286	688,588
��	Other	��	88,664	83,834
��		��	890,950	772,422
Expenses:		��	��	��
��	Aircraft fuel	��	262,072	218,963
��	Airport operations	��	113,806	109,151
��	Flight operations and navigational charges	��	91,784	84,097
��	Sales and distribution	��	87,096	76,822
��	Marketing, general and administration	��	48,129	47,816
��	Aircraft leasing	��	46,327	40,713
��	Depreciation and amortization	��	45,144	43,307
��	Inflight	��	39,073	33,499
��	Maintenance	��	37,727	30,622
��	Employee profit share	��	14,134	7,592
��		��	785,292	692,582
Earnings from operations		��	105,658	79,840
��		��	��	��
Non-operating income (expense):		��	��	��
��	Finance income	��	4,340	3,931
��	Finance costs	��	(12,737)	(16,198)
��	Gain on foreign exchange	��	1,286	1,499
��	Gain (loss) on disposal of property and equipment	��	19	(7)
��	Loss on derivatives	��	(3,450)	(2,257)
��		��	(10,542)	(13,032)
Earnings before income tax		��	95,116	66,808
��		��	��	��
Income tax expense (recovery):		��	��	��
��	Current	��	28,999	581
��	Deferred	��	(2,204)	17,978
��		��	26,795	18,559
Net earnings		��	68,321	48,249
��		��	��	��
Earnings per share:		��	��	��
��	Basic	��	0.50	0.34
��	Diluted	��	0.49	0.34
��		��	��	��
Weighted average number of shares outstanding - basic		��	137,773,920	142,308,050
Weighted average number of shares outstanding - diluted		��	138,189,084	143,141,454
��	��	��	��

Condensed Consolidated Statement of Financial Position

(Stated in thousands of Canadian dollars)

(Unaudited)

��			��		��	��
�� ��			��		March 31	December 31
�� ��			��		2012	2011
Assets			��		��	��
Current assets:			��		��	��
��		Cash and cash equivalents	��		1,400,812	1,243,605
��		Restricted cash	��		47,300	48,341
��		Accounts receivable	��		31,460	34,122
��		Prepaid expenses, deposits and other	��		55,276	66,936
��		Inventory	��		31,680	31,695
��			��		1,566,528	1,424,699
Non-current assets:			��		��	��
��		Property and equipment	��		1,921,182	1,911,227
��		Intangible assets	��		35,923	33,793
��		Other assets	��		104,557	103,959
��		Total assets	��		3,628,190	3,473,678
��			��		��	��
Liabilities and shareholders' equity			��		��	��
Current liabilities:			��		��	��
��		Accounts payable and accrued liabilities	��		401,435	307,279
��		Advance ticket sales	��		451,995	432,186
��		Non-refundable guest credits	��		44,065	43,485
��		Current portion of long-term debt	��		161,919	158,832
��		Current portion of obligations under finance leases	��		76	75
��			��		1,059,490	941,857
Non-current liabilities:			��		��	��
��		Maintenance provisions	��		156,811	151,645
��		Long-term debt	��		662,466	669,880
��		Obligations under finance leases	��		3,155	3,174
��		Other liabilities	��		9,830	10,449
��		Deferred income tax	��		323,645	326,456
Total liabilities			��		2,215,397	2,103,461
��			��		��	��
Shareholders' equity:			��		��	��
��		Share capital	��		627,018	630,408
��		Equity reserves	��		74,100	74,184
��		Hedge reserves	��		(4,742)	(3,353)
��		Retained earnings	��		716,417	668,978
Total shareholders' equity			��		1,412,793	1,370,217
��			��		��	��
Total liabilities and shareholders' equity			��		3,628,190	3,473,678
��	��	��	��

Condensed Consolidated Statement of Cash Flows

For the three months ended March 31

(Stated in thousands of Canadian dollars)

(Unaudited)

��		��	��	��
��		��	2012	2011
��		��	��	��
Operating activities:		��	��	��
Net earnings		��	68,321	48,249
Items not involving cash:		��	��	��
��	Depreciation and amortization	��	45,144	43,307
��	Change in long-term maintenance provisions	��	7,827	6,698
��	Change in other liabilities	��	(199)	(209)
��	Amortization of hedge settlements	��	350	350
��	Loss on derivative instruments	��	3,450	2,257
��	(Gain) loss on disposal of property and equipment	��	(19)	7
��	Share-based payment expense	��	2,691	3,369
��	Deferred income tax expense (recovery)	��	(2,204)	17,978
��	Finance income	��	(4,340)	(3,931)
��	Finance cost	��	12,737	16,198
��	Unrealized foreign exchange (gain) loss	��	(505)	432
��	Change in non-cash working capital	��	121,229	77,887
Change in restricted cash		��	1,041	(8,746)
Change in other assets		��	(1,541)	(2,300)
Cash taxes paid		��	(407)	(371)
Cash interest received		��	4,591	2,910
��		��	258,166	204,085
��		��	��	��
Investing activities:		��	��	��
Aircraft additions		��	(43,764)	(43,140)
Other property and equipment and intangible additions		��	(12,480)	(9,380)
��		��	(56,244)	(52,520)
��		��	��	��
Financing activities:		��	��	��
Increase in long-term debt		��	35,303	-
Repayment of long-term debt		��	(39,631)	(41,283)
Decrease in obligations under finance leases		��	(19)	(54)
Shares repurchased		��	(18,821)	(28,297)
Dividends paid		��	(8,226)	(14,205)
Cash interest paid		��	(11,271)	(14,024)
Change in non-cash working capital		��	(1,465)	3,979
��		��	(44,130)	(93,884)
��		��	��	��
Cash flow from operating, investing and financing activities		��	157,792	57,681
Effect of foreign exchange on cash and cash equivalents		��	(585)	(1,910)
Net change in cash and cash equivalents		��	157,207	55,771
��		��	��	��
Cash and cash equivalents, beginning of period		��	1,243,605	1,159,316
��		��	��	��
Cash and cash equivalents, end of period		��	1,400,812	1,215,087
��	��	��	��

CASM, excluding fuel and employee profit share

(Stated in thousands of Canadian dollars, except per unit data)

(Unaudited)

WestJet excludes the effects of aircraft fuel expense and employee
profit share expense to assess the operating performance of the
business. Fuel expense is excluded from operating results due to the
fact that fuel prices are impacted by a host of factors outside
WestJet's control, such as significant weather events, geopolitical
tensions, refinery capacity and global demand and supply. Excluding
this expense allows WestJet to analyze its operating results on a
comparable basis. Employee profit share expense is excluded from
operating results due to its variable nature and excluding this expense
allows greater comparability.

��	��
��	Three months ended March 31
��	2012	2011
CASM, excluding fuel and employee profit share	��	��
Operating expenses	785,292	692,582
Aircraft fuel expense	(262,072)	(218,963)
Employee profit share expense	(14,134)	(7,592)
Operating expenses, adjusted	509,086	466,027
ASMs	5,689,651,965	5,230,276,750
CASM, excluding above items (cents)	8.95	8.91
��	��	��

Return on invested capital (ROIC)

(Stated in thousands of Canadian dollars, except per unit data)

(Unaudited)

ROIC is a measure commonly used to assess the efficiency with which a
company allocates its capital to generate returns. Return is calculated
based on our earnings before tax, excluding special items, finance
costs and implied interest on our off-balance-sheet aircraft leases.
Invested capital includes average long-term debt, average finance lease
obligations, average shareholders' equity and off-balance-sheet
aircraft operating leases.

��	��		��	��
��	($ in thousands, except percentage amounts)		March 31, 2012	December 31, 2011
��	Return on invested capital(i)		��	��
��	Earnings before income taxes		236,314	208,006
��	Add:		��	��
��	��	Finance costs	57,450	60,911
��	��	Implicit interest in operating leases(ii)	89,872	86,925
��	��		383,636	355,842
��	Invested capital:		��	��
��	��	Average long-term debt(iii)	904,639	927,757
��	��	Average obligations under finance leases(iv)	3,268	3,303
��	��	Average shareholders' equity	1,368,275	1,337,225
��	��	Off-balance-sheet aircraft leases(v)	1,283,888	1,241,783
��	��		3,560,070	3,510,068
��	Return on invested capital		10.8%	10.1%

(i)����	The trailing 12 months are used in the calculation of ROIC.
(ii)��	Interest implicit in operating leases is equal to 7.0 per cent of 7.5 times the trailing 12 months of aircraft lease expense. 7.0 per cent is a proxy and does not necessarily represent actual for any given period.
(iii)	Average long-term debt includes the current portion and long-term portion.
(iv)	Average capital lease obligations include the current portion and long-term portion.
(v)	Off-balance-sheet aircraft leases are calculated by multiplying the trailing 12 months of aircraft leasing expense by 7.5. At March 31, 2012, the trailing 12 months of aircraft leasing costs totalled $171,185 (December 31, 2011 - $165,571).
��	��

Net earnings per guest

(Stated in thousands of Canadian dollars, except per unit data)

(Unaudited)

Net earnings divided by the number of segment guests.

��	��
��	Three months ended March 31
��	2012	2011
Net earnings per guest	��	��
Net earnings	68,321	48,249
Segment guests	4,230,415	3,899,108
Net earnings per guests	16.15	12.37
��	��	��

Operating cash flow per share

(Stated in thousands of Canadian dollars, except per unit data)

(Unaudited)

Cash flow from operations divided by the diluted weighted average number
of shares outstanding.

��	��
��	Three months ended March 31
��	2012	2011
Operating cash flow per share	��	��
Cash flow from operating activities	258,166	204,085
Weighted average number of shares outstanding - diluted	138,189,084	143,141,454
Diluted operating cash flow per share	1.87	1.43

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For further information:

WestJet Media Relations
1-888-WJ-4-NEWS (1-888-954-6397)
Email:��media@westjet.com��

WestJet Investor Relations
1-877-493-7853
Email:��investor_relations@westjet.com

Website:��www.westjet.com