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STAYING TRUE
WESTJET 2011 ANNUAL GENERAL MEETING
May 3, 2011
FORWARD-LOOKING STATEMENT
2
Certain information in this presentation and statements made during this presentation, including any question and
answer session, may contain forward-looking statements, including but not limited to, those regarding projected
economic indicators, future expansion plans for WestJet and WestJet Vacations Inc. (WVI), capacity growth, fleet
expansion, potential interline and code-share agreements, ASM, RASM, CASM and future revenue and profits,
implementation of the new reservation system, the reward program and co-branded credit card, cost-saving initiatives,
addition of new destinations, market-share and business travel expansion, hedging activities and ancillary revenue
expansion. Certain material factors and assumptions were applied in formulating these forward-looking statements.
These forward-looking statements are subject to, and may be affected by, numerous risks and uncertainties which
may cause WestJet’s actual results to differ materially from a conclusion, forecast or projection expressed in or implied
by such statements. Factors that could cause or contribute to these differences include, but are not limited to: changes
in government policy, exchange rates, interest rates, disruption of supplies, volatility of fuel prices, terrorism, general
economic conditions, the competitive environment and other factors described in WestJet’s public reports and filings
which are available under WestJet’s profile on SEDAR (www.sedar.com). Forward-looking statements are subject to
change and WestJet does not undertake to update or revise any forward-looking information as a result of any new
information, future events or otherwise, except as required by applicable law.
May 2011
“15 TH BIRTHDAY” VIDEO
GROWTH AND STRONG FINANCIAL PERFORMANCE CONTINUES
5
• 4 more consecutive quarters of profitability
• Launched WestJet Frequent Guest Program & Credit Card Program
• Launched 4 additional interline agreements
• Launched 1st code-share agreement with Cathay Pacific
• Increased self-service capabilities
• Declared our first ever quarterly dividend
• Initiated a normal course issuer bid to buy back shares
• Announced some fleet deferrals to improve flexibility
• Highest ranked airline based on brand equity surveys
• Inducted into the corporate culture hall of fame
RECAP OF 2010STAYING TRUE
Cost efficiencies have led to low break-even load factor
• Cost efficiencies are driven by:- High utilization of aircraft- High employee productivity- Single-fleet efficiencies- Self service- Ownership culture- Disciplined focus on expenditures
6* WJ & AC restated to IFRS. Under CGAAP WJ 72.3% and AC 78.6%Source: Internal estimates, company reports
60.00%
65.00%
70.00%
75.00%
80.00%
85.00%
So u
thw
est
We
stJe
t *
US
Air
way
s
Am
eric
an
JetB
lue
Air
Can
ada
*
Ala
ska
De
lta
Un
ited
2010 Load Factor 2010 Break-even Load Factor
COST EFFICIENCYREMOVING COSTS WHERE POSSIBLE
7
8.7 8.9 8.5 8.5 8.6 8.9
3.4 3.5 4.73.2 3.5 3.5
1.9 2.21.7
1.2 1.3 1.0
0
2
4
6
8
10
12
14
16
2006
2007
2008
2009
2010
2010
*
(cen
ts per
ASM
)
CASM (ex fuel) Fuel Op. Margin*IFRS basis
•Excludes reservation system impairment of $31.9 million in 2007
COSTS REMAIN UNDER CONTROL
8
Full Year 2010 2009 Change
Revenue (millions) $2,609 $2,281 14.4%
RASM (cents) 13.36 12.97 3.0%
CASM (cents) 12.09 11.77 2.7%
CASM, ex-fuel and profit share (cents) 8.52 8.45 0.8%
Operating Margin 9.5% 9.2% 0.3 pts.
EPS $0.94 $0.74 27.0%
Canadian Generally Accepted Accounting Principles
FINANCIAL PERFORMANCE - 2010
Improved earnings - EPS up 27%
9
Note on YTD comparatives: all FY 2010 (Dec. 2010) e xcept:
BA – 6 months ended Sept. 2010 EasyJet – 12 months ended Sept. 2010
Qantas – 6 months ended Dec. 2010 GOL – 9 mounts ended Dec. 2010
Singapore – 9 months ended Dec. 2010
16.0%
12.9%
7.8%
5.9%5.2% 4.8% 4.6% 4.3%
3.6% 3.3%2.3%
-2.3%
0.2%
10.9%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%R
yana
ir
Sin
gapo
re
Ala
ska
Wes
tJet
Sou
thw
est
Eas
yJet
Uni
ted
Del
ta
JetB
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Brit
ish
Airw
ays
GO
L
Qan
tas
Air
Can
ada
Am
eric
an
Adj
uste
d E
BT
Mar
gin
FINANCIALLY SOUND – FY 2010WESTJET RANKS AMONG THE TOP IN THE INDUSTRY
VIDEO: DID YOU KNOW?
11
0
1
2
3
4
5
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Mile
s (b
illio
ns)
0%
10%
20%
30%
40%
50%
60%
70%
80%
Load
Fac
tor
%
ASMs RPMs Load Factor %
OUR GROWTH CONTINUES
12
*Yield for 2008 & 2009 based on CGAAP, while 2010 & 2011 yield is based on IFRS. Difference between CGAAP and IFRS is not material, for example 2010 difference is only 0.01 – 0.02 cents.
50%
60%
70%
80%
90%
100%
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Load
Fac
tor
%
10.00
12.00
14.00
16.00
18.00
20.00
Yie
ld (
cent
s)
Load Factor % Yield (cents)
RECOVERING ECONOMY = PRICING POWER
13
First Quarter 2011 2010 Change
Revenue (millions) $772 $619 24.7%
RASM (cents) 14.77 13.18 12.1%
CASM (cents) 13.24 12.67 4.5%
CASM, ex-fuel and profit share (cents) 8.91 9.21 (3.3%)
Operating Margin 10.3% 3.9% 6.4 pts.
EPS $0.34 $0.02 1,600.0%
International Financial Reporting Standards
FINANCIAL PERFORMANCE – Q1 2011
Revenues up almost 25% - Operating Margin more than doubles
14
Q1 2011 adjusted EBT Margin per reported results (a djusted for special items and non-op mark-to-market hedge gains/losses)
FINANCIALLY SOUND – Q1 2011WESTJET RANKS 2 nd AMONG NORTH AMERICAN AIRLINES
Earnings Before Tax Margin
(3.7)%(5.0)%
(7.3)%
8.7 %
14.1 %
0.6 %
(1.6)%
5.1 %
1.4 %
-10%
-5%
0%
5%
10%
15%
20%
Alle
gian
t
Wes
tJet
Ala
ska
Sou
thw
est
JetB
lue
UA
L C
orp
US
Airw
ays
Del
ta
Am
eric
an
15
WestJet Destinations Served*
8 8 9 12 1520 21 24 24 23 23 26 28 30 31
7 11 1111
12
17 1724
6 6
5
7
1317
1
0
10
20
30
40
50
60
70
80
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Domestic Transborder Mexico Caribbean
*Destinations Served at Year-End
3134
35
44
51
66
71
GROWING DESTINATIONS
16
2010 2011 2012 2013 2014 2015 2016 2017 2018
Leased 38 43 44 44 44 44 44 44 44
Owned 53 54 56 61 65 74 82 88 91
Total confirmed fleet 91 97 100 105 109 118 126 132 135
Net change Leased 5 5 1 0 0 0 0 0 0
Net change Owned 0 1 2 5 4 9 8 6 3
Total Net Change 5 6 3 5 4 9 8 6 3 44
Lease expiries 0 0 0 3 0 12 8 6 433
Lease expiries have options to renew
• By 2018 – Opportunity to have between 102 to 135 aircraft
• Recent deferrals have improved alignment of deliveries and lease returns.
MEASURED CAPACITY GROWTHFLEXIBLE FLEET PLAN EXPANSION UNTIL 2018
BUILDING ON OUR CAPABILITIES
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•One of the fastest growing vacation operators in Canada
•Large market opportunity available to capture
•Integrated approach with WestJet taps multiple demand streams
•Competitive advantage with flexible product combinations and scheduled service to all destinations allowing more booking options
Estimated leisure market size in Canada
$5.0
$5.0
$10.9
0
5
10
15
20
25
Outbound Domestic Market Size
$bn
ITC Market FIT Market Leisure Retail Market
WestJet Vacations addressable market segments are ITC and FIT
Outside of current scope; might be able to capture a small percentage of this segment
Source: internal estimatesFIT – Flexible itinerary travelITC – Inclusive
WESTJET VACATIONSLEVERAGING OUR STRENGTHS IN A NEW MARKETPLACE
• Strategically selecting carriers in each major world region
• Seamless access to more destinations
• International travel options for the business traveller
• Innovative approach to code share
• Selective approach keeps costs in line
AIRLINE PARTNERSHIPS
Appeals to the mass market:
• Fully accretive to WestJet• Strong partnership with RBC for awareness• Simple and transparent• Two types of cards; different earning power• Uptake is in-line with expectations
20
Credit card
Appeals to the high frequency traveller:
• Simple and transparent program• Targeted at the traveller doing four to 40 trips per year
• Aims to capture additional high-yielding guests
• Uptake is in-line with expectations
Frequent Guest Program
REWARDS PROGRAM CREATING FURTHER LOYALTY
21
Expanded schedule
Toronto to Montreal
Montreal to Toronto
Summer 2011 Summer 2011
Depart Arrive Depart Arrive
0700 0810 0700 0815
0800 0910 0800 0915
0900 1010 0900 1015
1200 1310 1200 1315
1400 1510 1400 1515
1600 1710 1600 1715
1700 1810 1700 1815
1800 1910 1800 1915
1930 2040 1900 2015
2230 2340 2030 2145
Toronto to Ottawa
Ottawa to Toronto
Summer 2011 Summer 2011
Depart Arrive Depart Arrive
0700 0800 0700 0759
0800 0900 0800 0859
0900 1000 0930 1029
1200 1300 1200 1259
1400 1500 1400 1459
1600 1700 1600 1659
1730 1830 1700 1759
1830 1930 1800 1859
2230 2330 1930 2029
ENHANCED EASTERN TRIANGLE SCHEDULEIMPROVED VALUE FOR BUSINESS TRAVELERS
WE HAVE THE FINANCIAL STRENGTHTO PUT OUR STRATEGY INTO ACTION
23
0
200
400
600
800
1000
1200
1400
2005 2006 2007 2008 2009 2010* Q12011*
$ m
illio
ns
0
1
2
3
4
5
6
times
Cash Adj. net Debt/EBITDAR Adj. Debt/Equity
*2010 and 2011 presented under IFRS.Note: All figures are full-year figures based on trailing twelve months.Debt ratios include aircraft operating leases.
At March 31, 2011:- Cash of C$1,252 million- Cash to TTM of revenues ratio of 45%- Working Capital ratio of 1.47x - Adjusted debt to equity ratio of 1.58x- Adjusted net debt to EBITDAR of 1.51x
Initiated a quarterly dividend- $0.05 per share- Record date Dec 15, 2010, paid out Jan 21, 2011- Record date Mar 16, 2011, paid out Mar 31, 2011
Normal Course Issuer Bid- TSX approved 7,264,820 shares or ~ 5%- 4,179,092 shares re-purchased as of May 3, 2011 for total price of ~ $60 million- Program to run from Nov 5, 2010 to Nov 4, 2011- Purchase on open market and cancel
CAPITAL STRUCTURE
GIVING BACK TO THE COMMUNITY
25
COMMUNITY INVESTMENT PROGRAMS STAYING TRUE
Cares for Kids
• WestJet launched Cares for Kids in 2007 providing charitable partners with “the gift of flight” to use for direct program service delivery and business administration as well as to raise funds through raffles and auctions.
– Big Brothers Big Sisters of Canada– Boys & Girls Clubs of Canada– CNIB– Children’s hospitals and pediatric wards of Canada– Hope Air– Kids Help Phone– KidSport Canada– Missing Children Society of Canada– Make-A-Wish Foundation of Canada– Ronald McDonald House Charities of Canada
• WestJet donated 4,255 single flights to assist our WestJet Cares for Kids partners in 2010.
WestJetters Caring for Our Community
• WestJetters donate their passion, time and talents to community initiatives including registered charities, non-profit organizations, Registered Canadian Amateur Athletic Associations and local sports teams.
• In 2010, WestJetters gave in excess of 27,150 volunteer hours to 245 different charities, community-based organizations and local sports teams located across Canada.
Do The Right Thing
• Donated $100,000 to the Canadian Red Cross to assist with immediate needs, and WestJetters personally donated more than $90,000 to help Haiti.
• In 2010, WestJet donated 550 one-way flights to volunteers from 50 organizations and 58 round-trip flights to support fundraising efforts for Haiti.
• WestJet also gave $25,000 to the Canadian Red Cross to assist earthquake and tsunami relief efforts in Japan with WestJetters and WestJet guests donating an additional $14,500
COMMUNITY INVESTMENT - CONTINUED STAYING TRUE
27
• We have a very strong culture and highly engaged workforce
• We have a strong brand in the market place
• We continue to be among top tier in earnings margins in the industry
• We are a well-positioned, low-cost and efficient carrier
• We have a highly attractive combination of planned growth and strong
balance sheet
WE HAVE TAKEN OFF “WHEELS UP”
THANK YOU