WestJet: June Load Factor Down, But Still a Buy - Versant

Canada's top budget air carrier WestJet Airlines (WJAVF.PK) released disappointing June load factor results Monday, but Versant Partners is looking ahead to the expected 2010 recovery and expects the airline to lead the way.

WestJet reported a load factor of 72.9% for June, less than the 76.5% posted in the same period last year. Overall second-quarter results came in at 76.1%, also less than the 79.5% recorded in 2008 and slightly behind Versant's forecast of 77%.

Cameron Doerksen, transportation analyst with Versant Partners, said losses now will be recovered when an economic recovery takes hold.

"We view an investment in WestJet as a good way to play an economic recovery," he said in a note Monday. "If one believes that the economy will show some signs of life later this year, then WestJet will be a direct beneficiary."

In the meantime, investors should keep an eye out for WestJet's second-quarter results in August.

Versant maintains a Buy rating on the airline, with a one-year price target of C$15.

Comments

[novice inve...:]

I haven't flown for many years, but
when I do it will definately be with
WestJet if they have a flight scheduled
to my destination. They are a concerned
and caring Co. from all I hear on our
Canadian News.
I might even buy a little stock in the
near future. When the economy recovers
I'm sure they will do especially well.
Keep up the Good Work WestJet.

Jul 08 03:00 AM

[cilka:]

I fly with WestJet on a regular bais and there is nothing else out there to compare them to. They are truly the "little engine that could"; however, the brains (and brawn!) behind them are amazing! They came into Alberta at exactly the right time, got the absolutely best banking, marketing and chuztpah imaginable and simply took over!
They keep current and the loyality of customers and staff is unparalled. In this environment that means something.

Jul 08 09:41 PM