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News from Reuters

WestJet earnings drop 46 percent on weak demand

04/11/09

TORONTO (Reuters) - WestJet Airlines Ltd posted a 46 percent decrease in third-quarter earnings on Wednesday as the Canadian airline struggled with weak consumer confidence and heightened competition in the industry.

Canada's No. 2 airline reported earnings of C$31.4 million ($29.6 million), or 24 Canadian cents a share, for the three months to end-September, down from a profit of C$57.9 million, or 45 Canadian cents, in the same period a year earlier.

WestJet's revenue fell 16.4 percent to C$600.6 million.

Analysts, on average, had expected the airline to report earnings of 27 Canadian cents a share on revenue of C$603 million, according to Thomson Reuters I/B/E/S.

The company said its load factor fell 1.7 percentage points to 79.7 percent.

Shares in WestJet, which competes with Air Canada domestically and is one of the few profitable carriers in the world, are down about 15 percent this year.

($1=$1.06 Canadian)

(Reporting by Scott Anderson)

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