WestJet swings to profit in second quarter ahead of privatization

Business in brief

WestJet swings to profit in second quarter ahead of privatization

CALGARY — WestJet Airlines Ltd. says it swung to a profit in the second quarter ahead of Onex Corp. taking the airline private in a $3.5-billion deal.

The Calgary-based company says it had net earnings of $44.3 million in the quarter ending June 30, compared with a loss of $15.8 million in the same quarter last year.

Diluted earnings per share worked out to 38 cents each for the quarter, compared with a loss of 14 cents per share in the same quarter last year.

The company saw total revenue climb to $1.21 billion from $1.09 billion last year as it flew 3.5 per cent more travellers in the quarter.

Earlier this week, WestJet shareholders approved Onex’s bid to acquire and take private the company for $31 a share. The deal is still subject to some closing conditions, including regulatory approvals.

The offer was a reduction from the preliminary price of $35.75 per share submitted in March due to uncertainties related to the grounding of Boeing 737 Max jets, according to the proxy circular provided to shareholders.

“We are very pleased with this significant return to second quarter profitability,” said WestJet President & CEO Ed Sims.

The company’s board has declared a cash dividend of 14 cents per share for the third quarter, to be paid out at the end of September.

Just Posted

Expert panel to review supervised consumption sites in Alberta including Red Deer

Eight experts will hear from Albertans on the social and economic impacts… Continue reading

Environment groups warned saying climate change is real could be seen as partisan

OTTAWA — A pre-election chill has descended over some environment charities after… Continue reading

Scheer repeats call on RCMP to investigate Trudeau’s actions in SNC affair

OTTAWA — Conservative Leader Andrew Scheer says the federal ethics commissioner’s stinging… Continue reading

Vikings Days a celebration of Danish immigration, culture

The Danish Canadian Museum near Dickson held its annual Viking Days celebration… Continue reading

WATCH: ‘Lots to see and do’ at Pioneer Days in Red Deer

Sunnybrook Farm Museum is celebrating its 24th annual Pioneer Days this weekend.… Continue reading

Your community calendar

Thursday The Red Deer and District Garden Club hosts its annual Flower… Continue reading

34% of economists in survey expect a US recession in 2021

WASHINGTON — A number of U.S. business economists appear sufficiently concerned about… Continue reading

Ontario cannabis retailer returns $2.9M in CannTrust products to company

VAUGHAN, Ont. — CannTrust Holdings Inc. says the Ontario government’s cannabis retailer… Continue reading

Pipeline rupture sends 40,000 litres of oil into Alberta creek

DRAYTON VALLEY, Alta. — The Alberta Energy Regulator says a pipeline has… Continue reading

Chrystia Freeland condemns violence in Hong Kong, backs right to peaceful assembly

OTTAWA — Foreign Affairs Minister Chrystia Freeland has condemned violence in Hong… Continue reading

Turtles, butterflies and foxes: Captive breeding for endangered species growing

LANGLEY, B.C. — The turtle in my hand dangles its churning feet… Continue reading

Saskatoon Cubs win Westerns with wild extra-innings comeback

The Saskatoon Cubs showed no quit in the finals of the 18UAAA… Continue reading

Canada ‘disappointed’ terror suspect’s British citizenship revoked

OTTAWA — The United Kingdom is shirking its share of the international… Continue reading

Most Read