WestJet has announced June 2015 traffic results: Load factor was down 0.5% year on year for June 2015 at 76.9%. Revenue passenger miles (RPMs), increased 7% year on year for June while capacity, measured in available seat miles (ASMs), was 7.6% up year on year. WestJet achieved an on-time performance rate of 89.4%, an improvement of 3.7ppts on June 2014. Q2 2015 saw load factor down 1.5% year on year at 78.1% even though passenger numbers were up some 184,000 for the first half.
As a result of a substantively enacted increase in the Alberta provincial corporate income tax rate from 10 to 12%, WestJet expects its effective tax rate for the full year 2015 to be 29 to 30%, as compared to its previous guidance of 27 to 28%. For the second quarter of 2015, WestJet expects its effective tax rate to be approximately 31%.
PRASM has been guided down 5.7% year on year, with the difference primarily driven by a more aggressive mix of lower fares during the quarter and higher than expected ASMs. CASM, excluding fuel and profit share to be up approximately 0.5% year on year, from previous guidance of 2.0 to 2.5% higher, with the difference primarily driven by lower than expected airport operating costs and lower marketing, general and administration expenses, as well as higher than expected ASMs; and
Fuel cost per litre guidance is now approximately 69 cents, at the high end of its previous range of 67 to 69 cents.
In the second quarter, WestJet launched non-stop service on several new routes. WestJet Encore began non-stop service between Toronto and Fredericton, NB on April 15, 2015 and between Calgary and Terrace, BC on May 3, 2015. WestJet also began non-stop service between Calgary and Yellowknife, NT as well as Toronto and Gander, NL on May 3, 2015 and between Halifax and Glasgow, Scotland on May 29, 2015. In June, WestJet announced that it had selected London, England as the first transatlantic destination for its 767-300ERW aircraft, with service from Canada through London Gatwick beginning in the spring of 2016. Further announcements on schedules, pricing and launch cities will be communicated later this summer, with service commencing in spring 2016.