CALGARY, May 3, 2016 /CNW/ – WestJet (TSX: WJA) today announced its 44th consecutive profitable quarter, with first quarter 2016 net earnings of $87.6 million, or $0.71 per diluted share. This compares with the all-time high quarterly net earnings of $140.7 million, or $1.09 per diluted share reported in the first quarter of 2015. WestJet achieved an on-time performance rate of 83.0 per cent in the first quarter, a significant year-over-year improvement of 5.0 percentage points. Based on the trailing twelve months, the airline achieved a return on invested capital of 12.8 per cent, compared with the 15.3 per cent reported in the previous quarter.

“Although we continue to feel the impact of economic weakness in Alberta, the fundamentals of our business remain strong as demonstrated by our recent assignment of an investment grade credit rating by Moody’s, and we are seeing positive trends as a result of adjustments we have made to our schedules and the strategic initiatives we are undertaking,” said WestJet President and CEO Gregg Saretsky. “My thanks go out to our more than 11,000 WestJetters for continuing to provide our award-winning brand of friendly caring service as we celebrate our 20th year of operations.”

Credit ratings
WestJet recently announced that Moody’s Investors Services has assigned it an investment grade ‘Baa2’ senior unsecured issuer rating and a ‘Baa2’ senior unsecured notes rating with a stable outlook. This is the second credit rating agency to assign WestJet with an investment grade corporate credit rating. In March, Standard & Poor’s confirmed WestJet’s corporate credit rating of ‘BBB-’ with a stable outlook.

Normal course issuer bid
Today, WestJet also announced intention, upon the expiry of the 12-month period of its current normal course issuer bid, to make an application to the Toronto Stock Exchange to initiate a further normal course issuer bid to purchase up to 4,000,000 Common Voting and Variable Voting Shares.

Dividend declaration
On May 2, 2016, WestJet’s Board of Directors declared a cash dividend of $0.14 per common voting share and variable voting share for the second quarter of 2016, to be paid on June 30, 2016, to shareholders of record on June 15, 2016. 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.