Business

WestJet profit sank 19% last year as costs mount

WestJet Airlines saw its full-year profit drop 19.6 per cent from 2015, as its operating expenses increased more than revenue did.

Calgary-based airline earned $295 million in 2016

WestJet had a profit of $295 million last year. (Darryl Dyck/Canadian Press)

WestJet Airlines saw its full-year profit drop 19.6 per cent from 2015, as its operating expenses increased more than revenue did.

The Calgary-based company's net income for the 12 months that ended Dec. 31 was $295.5 million, or $2.45 per diluted share.

That was down from $367.5 million or $2.92 per share in 2015, a record for WestJet.

Last year's fourth-quarter net income was down 12.9 per cent, falling to $55.2 million from $63.4 million a year earlier.

The quarter's profit amounted to 47 cents per diluted share of net income, down from 51 cents. Full-year profit was $2.45 per share, down from $2.92 per share in 2015.

WestJet's annual revenue increased 2.32 per cent to $4.12 billion and fourth-quarter revenue was up 6.2 per cent to $1.02 billion, while operating expenses were up 6.4 per cent for the year and 10.2 per cent for the quarter.