WestJet announces 19th consecutive quarter of profitability

Airline reports fourth quarter net earnings of $20.2 million

CALGARY, Feb. 17 /CNW/ - WestJet (TSX:WJA) today announced its fourth quarter and full-year results for 2009. The airline reported fourth quarter net earnings of $20.2 million or 14 cents per diluted share and full-year net earnings of $98.2 million or 74 cents per diluted share. The airline's results were impacted by a non-recurring net future income tax reduction during 2009. Excluding this gain, WestJet reported adjusted fourth quarter net earnings of $15.1 million or 11 cents per diluted share and adjusted full-year net earnings of $93.1 million or 71 cents per diluted share.

"We are pleased to report that WestJet finished 2009 with its 19th consecutive quarter of profitability," commented WestJet President and CEO Sean Durfy. "Achieving four quarters of profitable results in a year that will be remembered as the world's worst recession since the great depression is truly a testament to the ability of our WestJetters and our solid business model. The additional challenges of H1N1 and enhanced security measures made this an extremely difficult business environment for the airline industry. However, our WestJetters once again demonstrated that our company can deliver industry-leading financial results despite the pressures."

The airline reported a fourth quarter operating margin of 6.3 per cent compared to 9.6 per cent in the same quarter of 2008. For the full year, WestJet achieved an operating margin of 9.2 per cent compared to a 2008 margin of 11.5 per cent.

"For the fourth quarter and the full year, we were once again one of the top performers in the North American airline industry," said Sean Durfy. "Throughout the year, we strengthened our balance sheet, tightened our cost controls and laid the foundation for continued growth. We also focused on key initiatives including the expansion of WestJet Vacations and the implementation of our new reservation system. Thank you to our exceptional WestJetters for their many accomplishments and ongoing commitment to our airline's success."

    
              Operating highlights (stated in Canadian dollars)

    -------------------------------------------------------------------------
                       Q4        Q4            Full-year  Full-year
                     2009      2008    Change       2009       2008   Change
    -------------------------------------------------------------------------
    Net earnings
     (millions)    $20.2     $42.0     (51.9%)    $98.2     $178.5    (45.0%)
    -------------------------------------------------------------------------
    Adjusted net
     earnings
     (millions)* $15.1     $42.0     (64.0%)    $93.1     $178.5    (47.8%)
    -------------------------------------------------------------------------
    Diluted
     earnings
     per share     $0.14     $0.33     (57.6%)    $0.74      $1.37    (46.0%)
    -------------------------------------------------------------------------
    Adjusted
     diluted
     earnings per
     share*      $0.11     $0.33     (66.7%)    $0.71      $1.37    (48.2%)
    -------------------------------------------------------------------------
    Revenue
     (millions)   $570.0    $615.8      (7.4%) $2,281.1   $2,549.5    (10.5%)
    -------------------------------------------------------------------------
    ASMs
     (available
     seat miles)
     (billions)    4.413     4.288       2.9%    17.588     17.139      2.6%
    -------------------------------------------------------------------------
    RPMs (revenue
     passenger
     miles)
     (billions)    3.461     3.329       4.0%    13.835     13.731      0.8%
    -------------------------------------------------------------------------
    Load factor    78.4%     77.6%   0.8 pts.     78.7%      80.1% (1.4 pts.)
    -------------------------------------------------------------------------
    Yield (revenue
     per revenue
     passenger
     mile)
     (cents)       16.47     18.50     (11.0%)    16.49      18.57    (11.2%)
    -------------------------------------------------------------------------
    RASM (revenue
    per available
     seat mile)
     (cents)       12.92     14.36     (10.0%)    12.97      14.88    (12.8%)
    -------------------------------------------------------------------------
    CASM (cost
     per available
     seat mile)
     (cents)       12.10     12.98      (6.8%)    11.77      13.17    (10.6%)
    -------------------------------------------------------------------------
    CASM,
     excluding
     fuel and
     employee
     profit share
     (cents)        8.67      8.68      (0.1%)     8.45       8.29      1.9%
    -------------------------------------------------------------------------
    2008 comparatives have been restated due to a change in accounting
    policy. * Refer to reconciliations in the accompanying tables for
    further information regarding adjustments.
    

"In the fourth quarter, we added five new aircraft for a year-end total of 86. Our fleet is serving our growing network of 68 destinations in Canada, U.S., the Caribbean and Mexico," said Sean Durfy. "Our fourth quarter RASM decline of 10 per cent was less of a decline than we expected thanks to a better than anticipated December. RASM continues to be closely managed by carefully balancing load factor and yield."

Sean Durfy also commented on the progress of WestJet's new reservation system, "We have been working diligently to get our service levels back to our high standards. We are pleased to report that call centre wait times are very close to pre-cutover levels. We are grateful for the understanding that our guests have demonstrated. Our WestJetters are working very hard to put this disruption behind us. We are excited about the enhanced functionality that our new reservation system enables including additional opportunities for ancillary revenues and more seamless partnerships with other airlines."

WestJet took a further delivery of a 737-800 series aircraft in February 2010, and the airline plans to take delivery of an additional 737-700 before the end of the first quarter of 2010 bringing its fleet size to 88 aircraft. The airline also anticipates a seven per cent increase in capacity in the first quarter of 2010 compared to the same period in 2009.

"While reports of an economic rebound are starting to surface, we remain cautious in our predictions of recovery," added Sean Durfy. "We believe that we will continue to see pressure on fares in the first quarter of 2010. Although it is still early, it appears that first quarter RASM is tracking to a year-over-year decline of less than five per cent."

"We look back on 2009 as a foundational year, and in 2010 we are focused on finishing what we started," stated Sean Durfy. "In the first quarter we will launch our frequent guest and credit card programs. Throughout 2010, we will enter into additional strategic partnerships with other airlines and continue expanding WestJet Vacations, both of which we believe will enhance our future revenue growth. The strength and leadership of our WestJetters turned 2009 into a profitable year with significant accomplishments, and we have every reason to believe that we can carry this momentum into 2010."

WestJet also reported fourth quarter operational performance. WestJet calculates its on-time performance (the percentage of flights that arrived within 15 minutes of their scheduled time) and completion rate (the percentage of flights completed from flights originally scheduled) based on the U.S. Department of Transportation's standards. WestJet's baggage ratio represents the number of delayed or lost baggage claims made per 1,000 guests. The airline strives to be one of the top North American airlines for these three operational performance metrics.

The airline's on-time performance declined in the fourth quarter due to a number of factors including disruptions caused by winter weather, increased security measures and the initial cutover to its new reservation system.

    
    -------------------------------------------------------------------------
                       Q4        Q4            Full-year  Full-year
                     2009      2008    Change       2009       2008   Change
    -------------------------------------------------------------------------
    On-time
     performance   63.8%     68.9%  (5.1 pts.)    78.6%      77.0%   1.6 pts.
    -------------------------------------------------------------------------
    Completion
     rate          99.1%     98.1%   1.0 pts.     98.9%      98.7%   0.2 pts.
    -------------------------------------------------------------------------
    Bag ratio       4.36      4.68       6.8%      3.57       4.12     13.3%
    -------------------------------------------------------------------------
    

Caution regarding forward-looking statements

Certain information set forth in this press release, including but not limited to information regarding WestJet's normalization of operations related to its reservation system, capacity projections, anticipated aircraft delivery schedule, implementation of rewards programs, expectations of future revenue from WestJet Vacations, anticipated initiation of airline partnerships, possible fare pressures and projected RASM for the first quarter 2010 contain forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond WestJet's control. These forward-looking statements are based on currently available implementation plans, agreements and bookings, but may vary due to factors including, but not limited to, inability to resolve issues with its reservation system, delay in aircraft delivery, labour shortages or disruptions, change in customer demand, general economic conditions, competitive conditions and availability of personnel and outside consultants. These and additional risk factors are discussed in WestJet's most recent Annual Information Form (AIF) and in other documents WestJet files from time to time with securities regulatory authorities, which are available through the Internet on WestJet's SEDAR 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 statements. WestJet does not undertake to update any forward-looking statements, except as is required by law.

WestJet's annual Management's Discussion and Analysis (MD&A) and Consolidated Financial Statements and Notes for the years ended December 31, 2009 and 2008 are available through the Internet on westjet.com or WestJet's SEDAR profile at www.sedar.com.

Conference call

WestJet will hold its quarterly analysts' conference call today at 9 a.m. MST (11 a.m. EST). WestJet President and CEO Sean Durfy and Executive Vice-President of Finance and CFO Vito Culmone will discuss WestJet's fourth quarter and year-end 2009 results and answer questions from financial analysts. The conference call is available by calling (647) 427-7450 (in Toronto) or through the toll-free telephone number (888) 231-8191. The call can also be heard live through an Internet webcast in the Media and Investors section of westjet.com.

    
    Consolidated Statement of Earnings
    (Stated in thousands of Canadian dollars, except per share amounts)
    (Unaudited)

    -------------------------------------------------------------------------
                                Three Months Ended       Twelve Months Ended
                                    December 31               December 31

                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
                                          Restated                  Restated

    Revenues:
      Guest revenues      $   528,104  $   561,514  $ 2,067,860  $ 2,301,301
      Charter and other
       revenues                41,938       54,269      213,260      248,205
    -------------------------------------------------------------------------
                              570,042      615,783    2,281,120    2,549,506
    Expenses:
      Aircraft fuel           148,853      177,422      570,569      803,293
      Airport operations       91,901       92,066      352,333      342,922
      Flight operations
       and navigational
       charges                 73,313       70,103      298,762      280,920
      Marketing, general
       and administration      54,659       61,190      208,316      211,979
      Sales and
       distribution            50,383       40,836      172,326      170,693
      Depreciation and
       amortization            36,836       34,829      141,303      136,485
      Inflight                 26,716       26,445      112,054      105,849
      Aircraft leasing         25,096       22,710      103,954       86,050
      Maintenance              23,884       24,144       96,272       85,093
      Employee profit
       share                    2,297        6,648       14,675       33,435
    -------------------------------------------------------------------------
                              533,938      556,393    2,070,564    2,256,719
    -------------------------------------------------------------------------
    Earnings from
     operations                36,104       59,390      210,556      292,787

    Non-operating income
     (expense):
      Interest income           1,554        5,624        5,601       25,485
      Interest expense        (16,366)     (18,450)     (67,706)     (76,078)
      Gain (loss) on
       foreign exchange          (754)      20,341      (12,306)      30,587
      Loss on disposal
       of property and
       equipment                 (324)        (475)      (1,177)        (701)
      Gain (loss) on
       derivatives              2,817       (6,336)       1,828      (17,331)
    -------------------------------------------------------------------------
                              (13,073)         704      (73,760)     (38,038)
    -------------------------------------------------------------------------
    Earnings before
     income taxes              23,031       60,094      136,796      254,749

    Income tax expense:
      Current                     588          304        2,690        2,549
      Future                    2,268       17,764       35,928       73,694
    -------------------------------------------------------------------------
                                2,856       18,068       38,618       76,243
    -------------------------------------------------------------------------
    Net earnings          $    20,175  $    42,026  $    98,178  $   178,506
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Earnings per share:
      Basic               $      0.14  $      0.33  $      0.74  $      1.39
      Diluted             $      0.14  $      0.33  $      0.74  $      1.37

    Weighted average
     number of shares
     outstanding -
     basic                144,257,857  127,911,516  132,130,009  128,690,146
    Weighted average
     number of shares
     outstanding -
     diluted              144,328,206  127,917,767  132,261,770  129,975,240
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Consolidated Balance Sheet
    (Stated in thousands of Canadian dollars)
    (Unaudited)

    -------------------------------------------------------------------------
                                                    December 31, December 31,
                                                        2009         2008
    -------------------------------------------------------------------------
                                                                    Restated

    Assets
    Current assets:
      Cash and cash equivalents                     $ 1,005,181  $   820,214
      Accounts receivable                                27,654       16,837
      Future income tax                                   2,560        8,459
      Prepaid expenses, deposits and other               56,239       53,283
      Inventory                                          26,048       17,054
    -------------------------------------------------------------------------
                                                      1,117,682      915,847

    Property and equipment                            2,307,566    2,269,790

    Intangible assets                                    14,087       12,060

    Other assets                                         54,367       71,005
    -------------------------------------------------------------------------
                                                    $ 3,493,702  $ 3,268,702
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Liabilities and shareholders' equity
    Current liabilities:
      Accounts payable and accrued liabilities      $   231,401  $   249,354
      Advance ticket sales                              286,361      251,354
      Non-refundable guest credits                       64,506       73,020
      Current portion of long-term debt                 171,223      165,721
      Current portion of obligations under
       capital leases                                       744          395
    -------------------------------------------------------------------------
                                                        754,235      739,844

    Long-term debt                                    1,048,554    1,186,182

    Obligations under capital leases                      3,358          713

    Other liabilities                                    19,628       24,233

    Future income tax                                   278,999      241,740
    -------------------------------------------------------------------------
                                                      2,104,774    2,192,712

    Shareholders' equity:
      Share capital                                     633,075      452,885
      Contributed surplus                                71,503       60,193
      Accumulated other comprehensive loss              (14,852)     (38,112)
      Retained earnings                                 699,202      601,024
    -------------------------------------------------------------------------
                                                      1,388,928    1,075,990

    Commitments and contingencies
    -------------------------------------------------------------------------
                                                    $ 3,493,702  $ 3,268,702
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Consolidated Statement of Shareholders' Equity
    (Stated in thousands of Canadian dollars)
    (Unaudited)
    -------------------------------------------------------------------------
                                Three Months Ended       Twelve Months Ended
                                    December 31               December 31

                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
                                          Restated                  Restated

    Share capital:
      Balance, beginning
       of period          $   628,740  $   452,776  $   452,885  $   448,568
      Issuance of shares
       pursuant to stock
       option plans                 -            -            -          227
      Stock-based
       compensation
       expense on stock
       options exercised          509          109        1,561       11,181
      Stock-based
       compensation
       expense on
       executive share
       units exercised              -            -          569            -
      Issued on public
       offering                     -            -      172,463            -
      Issuance of shares
       pursuant to
       employee share
       purchase plan            3,835            -       11,071            -
      Share issue costs           (12)           -       (7,468)           -
      Tax effect of
       share issue costs            3            -        1,994            -
      Shares repurchased            -            -            -       (7,091)
    -------------------------------------------------------------------------
                              633,075      452,885      633,075      452,885

    Contributed surplus:
      Balance, beginning
       of period               69,933       57,671       60,193       57,889
      Stock-based
       compensation
       expense                  2,079        2,631       13,440       13,485
      Stock-based
       compensation expense
       on stock options
       exercised                 (509)        (109)      (1,561)     (11,181)
      Stock-based
       compensation expense
       on executive share
       units exercised              -            -         (569)           -
    -------------------------------------------------------------------------
                               71,503       60,193       71,503       60,193

    Accumulated other
     comprehensive loss:
      Balance, beginning
       of period              (20,465)      (9,717)     (38,112)     (11,914)
      Other comprehensive
       income (loss)            5,613      (28,395)      23,260      (26,198)
    -------------------------------------------------------------------------
                              (14,852)     (38,112)     (14,852)     (38,112)

    Retained earnings:
      Balance, beginning
       of period              679,027      570,400      611,171      455,365
      Change in accounting
       policy                       -      (11,402)     (10,147)     (10,518)
      Shares repurchased            -            -            -      (22,329)
      Net earnings             20,175       42,026       98,178      178,506
    -------------------------------------------------------------------------
                              699,202      601,024      699,202      601,024

    Total accumulated
     other comprehensive
     loss and retained
     earnings                 684,350      562,912      684,350      562,912

    -------------------------------------------------------------------------
    Total shareholders'
     equity               $ 1,388,928  $ 1,075,990  $ 1,388,928  $ 1,075,990
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Consolidated Statement of Comprehensive Income
    (Stated in thousands of Canadian dollars)
    (Unaudited)

    -------------------------------------------------------------------------
                                Three Months Ended       Twelve Months Ended
                                    December 31               December 31

                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
                                          Restated                  Restated

    Net earnings          $    20,175  $    42,026  $    98,178  $   178,506

    Other comprehensive
     income (loss),
     net of tax:
      Amortization of
       hedge settlements
       to aircraft
       leasing                    350          350        1,400        1,400
      Net unrealized gain
       (loss) on foreign
       exchange
       derivatives under
       cash flow hedge
       accounting(i)             (617)       5,556         (911)       7,224
      Reclassification
       of net realized
       gain on foreign
       exchange
       derivatives to
       net earnings(ii)             -       (2,360)      (3,977)      (3,197)
      Net unrealized gain
       (loss) on fuel
       derivatives under
       cash flow hedge
       accounting(iii)          3,266      (31,941)       6,709      (31,625)
      Reclassification of
       net realized loss
       on fuel derivatives
       to net earnings(iv)      2,614            -       20,039            -
    -------------------------------------------------------------------------
                                5,613      (28,395)      23,260      (26,198)

    -------------------------------------------------------------------------
    Total comprehensive
     income               $    25,788  $    13,631  $   121,438  $   152,308
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (i)   Net of income taxes of $230 and $447 (2008 - $(2,317) and $(3,097))
    (ii)  Net of income taxes of $nil and $1,576 (2008 - $992 and $1,357)
    (iii) Net of income taxes of $(1,353) and $(2,878) (2008 - $13,086 and
          $13,086)
    (iv)  Net of income taxes of $(1,093) and $(8,372) (2008 - $nil and $nil)



    Consolidated Statement of Cash Flows
    (Stated in thousands of Canadian dollars)
    (Unaudited)

    -------------------------------------------------------------------------
                                Three Months Ended       Twelve Months Ended
                                    December 31               December 31

                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
                                          Restated                  Restated

    Operating activities:
    Net earnings          $    20,175  $    42,026  $    98,178  $   178,506
    Items not
     involving cash:
      Depreciation and
       amortization            36,836       34,829      141,303      136,485
      Amortization of
       other liabilities       (5,846)        (233)      (7,595)        (937)
      Amortization of
       hedge settlements          350          350        1,400        1,400
      Unrealized loss
       (gain)
       on derivative
       instruments             (3,426)       6,323       (2,406)       6,725
      Issuance of shares
       pursuant to
       employee share
       purchase plan            3,835            -       11,071            -
      Loss on disposal of
       property and
       equipment                  331        1,583        1,504        1,809
      Stock-based
       compensation
       expense                  2,079        2,631       13,440       13,485
      Income tax credit
       receivable                   -            -       (1,952)           -
      Future income
       tax expense              2,268       17,764       35,928       73,694
      Unrealized foreign
       exchange loss
       (gain)                   1,319      (23,720)       8,440      (34,823)
      Change in non-cash
       working capital          6,645      (14,001)      19,350       84,242
    -------------------------------------------------------------------------
                               64,566       67,552      318,661      460,586
    -------------------------------------------------------------------------

    Financing activities:
      Increase in
       long-term debt          33,855            -       33,855      101,782
      Repayment of
       long-term debt         (41,287)     (41,570)    (165,757)    (179,397)
      Decrease in
       obligations under
       capital leases            (112)         (95)        (406)        (375)
      Issuance of shares            -            -      172,463          227
      Share issue costs           (12)           -       (7,468)           -
      Shares repurchased            -            -            -      (29,420)
      Decrease (increase)
       in other assets          3,427          (51)       3,427       (4,135)
      Change in non-cash
       working capital         (2,135)      (1,216)      (1,463)      (4,111)
    -------------------------------------------------------------------------
                               (6,264)     (42,932)      34,651     (115,429)
    -------------------------------------------------------------------------

    Investing activities:
      Aircraft additions      (10,266)      (3,942)    (118,686)    (114,470)
      Aircraft disposals            2           84           27           84
      Other property and
       equipment and
       intangible
       additions               (3,927)     (27,166)     (48,155)     (90,663)
      Other property and
       equipment and intangible
       disposals                    -            2          134          172
      Change in non-cash
       working capital              -        5,147            -        5,147
    -------------------------------------------------------------------------
                              (14,191)     (25,875)    (166,680)    (199,730)
    -------------------------------------------------------------------------
    Cash flow from
     (used in) operating,
     financing and
     investing
     activities                44,111       (1,255)     186,632      145,427
    Effect of foreign
     exchange on cash
     and cash equivalents        (578)      14,956       (1,665)      21,229
    -------------------------------------------------------------------------
    Net change in cash
     and cash equivalents      43,533       13,701      184,967      166,656

    Cash and cash
     equivalents,
     beginning of period      961,648      806,513      820,214      653,558

    -------------------------------------------------------------------------
    Cash and cash
     equivalents, end
     of period            $ 1,005,181  $   820,214  $ 1,005,181  $   820,214
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash interest paid    $    16,336  $    18,782  $    67,973  $    76,604
    Cash taxes paid       $       651  $       515  $     3,369  $     2,305
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Operating Highlights
    (Unaudited)

    -------------------------------------------------------------------------
                                                    Three months ended
                                                        December 31,

                                            2009            2008     Change
    -------------------------------------------------------------------------
    ASMs                           4,412,573,833   4,288,054,528        2.9%
    RPMs                           3,460,905,058   3,328,856,003        4.0%
    Load factor                            78.4%           77.6%     0.8 pts.
    Yield (cents)                          16.47           18.50      (11.0%)
    RASM (cents)                           12.92           14.36      (10.0%)
    CASM (cents)                           12.10          12.98*     (6.8%)
    CASM, excluding fuel and
     employee profit share (cents)          8.67           8.68*     (0.1%)
    Fuel consumption (litres)        216,871,585     210,090,434        3.2%
    Fuel costs per litre (dollars)          0.69            0.84      (17.9%)
    Segment guests                     3,515,168       3,518,362       (0.1%)
    Average stage length (miles)             923             899        2.7%
    Utilization (hours)                     11.4            12.1       (5.8%)
    Number of full-time equivalent
     employees at period end               6,291           6,187        1.7%
    Fleet size at period end                  86              76       13.2%
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                   Twelve months ended
                                                        December 31,

                                            2009            2008     Change
    -------------------------------------------------------------------------
    ASMs                          17,587,640,902  17,138,883,465        2.6%
    RPMs                          13,834,761,211  13,730,960,234        0.8%
    Load factor                            78.7%           80.1%   (1.4 pts.)
    Yield (cents)                          16.49           18.57      (11.2%)
    RASM (cents)                           12.97           14.88      (12.8%)
    CASM (cents)                           11.77          13.17*    (10.6%)
    CASM, excluding fuel and
     employee profit share (cents)          8.45           8.29*      1.9%
    Fuel consumption (litres)        859,115,698     839,699,921        2.3%
    Fuel costs per litre (dollars)          0.66            0.96      (31.3%)
    Segment guests                    14,038,827      14,283,630       (1.7%)
    Average stage length (miles)             923             913        1.1%
    Utilization (hours)                     11.7            12.3       (4.9%)
    Number of full-time equivalent
     employees at period end               6,291           6,187        1.7%
    Fleet size at period end                  86              76       13.2%
    -------------------------------------------------------------------------
    * Restated
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Reconciliation of non-GAAP measures to GAAP

To supplement the consolidated financial statements presented in accordance with Canadian GAAP, WestJet uses various non-GAAP performance measures. These measures are provided to enhance the reader's overall understanding of WestJet's current financial performance and are included to provide investors and management with an alternative method for assessing the operating results in a manner that is focused on the performance of ongoing operations and to provide a more consistent basis for comparison between quarters. These measures are not in accordance with, or an alternative to, Canadian GAAP and do not have standardized meanings. Therefore, they are not likely to be comparable to similar measures presented by other entities.

    
    Net earnings and diluted EPS
    (Stated in thousands of Canadian dollars, except per unit amounts)
    (Unaudited)

    -------------------------------------------------------------------------
                                         Three months ended
                                             December 31

                                    2009                      2008
    -------------------------------------------------------------------------
                                                          Restated

    Net earnings and
     diluted EPS - GAAP    $   20,175   $     0.14   $   42,026   $     0.33
    Non-recurring net
     future income tax
     expense reduction         (5,051)       (0.03)           -            -
    -------------------------------------------------------------------------
    Adjusted net earnings
     and diluted EPS       $   15,124   $     0.11   $   42,026   $     0.33
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                         Twelve months ended
                                             December 31

                                    2009                      2008
    -------------------------------------------------------------------------
                                                          Restated

    Net earnings and
     diluted EPS - GAAP    $   98,178   $     0.74   $  178,506   $     1.37
    Non-recurring net
     future income tax
     expense reduction         (5,051)       (0.03)           -            -
    -------------------------------------------------------------------------
    Adjusted net earnings
     and diluted EPS       $   93,127   $     0.71   $  178,506   $     1.37
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

CASM, excluding fuel and employee profit share

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

(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             Twelve Months Ended
                             December 31                     December 31

                        2009            2008            2009            2008
    -------------------------------------------------------------------------
                                    Restated                        Restated

    Operating
     expenses
     - GAAP    $     533,938   $     556,393   $   2,070,564   $   2,256,719
    Adjusted
     for:
      Aircraft
       fuel
       expense      (148,853)       (177,422)       (570,569)       (803,293)
      Employee
       profit
       share
       expense      (2,297)           (6,648)        (14,675)       (33,435)
    -------------------------------------------------------------------------
    Operating
     expenses,
     excluding
     above
     items -
     non-GAAP  $     382,788   $     372,323   $   1,485,320   $   1,419,991

    ASMs       4,412,573,833   4,288,054,528  17,587,640,902  17,138,883,465
    -------------------------------------------------------------------------
    CASM,
     excluding
     above items
     (cents) -
     non-GAAP           8.67            8.68            8.45            8.29
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

About WestJet

WestJet is Canada's preferred airline, offering scheduled service throughout its 68-city North American and Caribbean network. Inducted into the corporate culture hall of fame after being named one of Canada's most admired corporate cultures in 2005, 2006, 2007 and 2008, WestJet pioneered low-cost flying in Canada. WestJet offers increased legroom, leather seats and live seatback television provided by Bell TV on its modern fleet of 87 Boeing Next-Generation 737 aircraft. With future confirmed deliveries for an additional 48 aircraft through 2016, WestJet strives to be one of the five most successful international airlines in the world.

SOURCE WestJet

For further information: For further information: WestJet Media Relations, 1-888-WJ 4 NEWS (1-888-954-6397), Email: ropalmer@westjet.com; WestJet Investor Relations, 1-877-493-7853, Email: investor_relations@westjet.com, Website: www.westjet.com


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