Mr. Gregg Saretsky reports

WESTJET REPORTS JUNE TRAFFIC RESULTS AND UPDATES SECOND QUARTER OUTLOOK

WestJet Airlines Ltd. has released its June, 2015, traffic results, with a load factor of 76.9 per cent, a decrease of 0.5 percentage point year over year. Revenue passenger miles (RPMs), or traffic, increased 7.0 per cent year over year with a more aggressive mix of lower fares, and capacity, measured in available seat miles (ASMs), was 7.6 per cent higher over the same period. WestJet achieved an on-time performance rate of 89.4 per cent in June, an improvement of 3.7 percentage points year over year. In the second quarter of 2015, the airline achieved a load factor of 78.1 per cent, a decrease of 1.5 percentage points year over year, and flew a record five million guests, a year-over-year increase of 3.9 per cent or approximately 184,000 additional guests.

"We are pleased with our traffic growth in the second quarter and are committed to keeping our costs low in order to provide affordable air travel for our guests," said WestJet president and chief executive officer Gregg Saretsky. "I want to thank all WestJetters for their commitment to improving our on-time performance while continuing to provide our guests with the friendly, caring service for which WestJet is known."

                          TRAFFIC RESULTS

                               June, 2015                June, 2014

Load factor                          76.9%                     77.4%
ASMs (billions)                     2.187                     2.032
RPMs (billions)                     1.682                     1.572


                      Second quarter 2015       Second quarter 2014

Load factor                          78.1%                     79.6%
ASMs (billions)                     6.655                     6.193
RPMs (billions)                     5.199                     4.930


                        Year-to-date 2015         Year-to-date 2014

Load factor                          79.9%                     81.4%
ASMs (billions)                    13.473                    12.707
RPMs (billions)                    10.765                    10.347

WestJet has provided an update to its outlook for the second quarter of 2015. While continuing to expect year-over-year margin expansion and record net earnings for a second quarter, the airline now expects:

• As a result of a substantively enacted increase in the Alberta provincial corporate income tax rate from 10 to 12 per cent, WestJet expects its effective tax rate for full-year 2015 to be 29 to 30 per cent, as compared with its previous guidance of 27 to 28 per cent. For the second quarter of 2015, WestJet expects its effective tax rate to be approximately 31 per cent;
• RASM (revenue per available seat mile) to be down approximately 5.7 per cent year over year, as compared with its previous guidance of a moderate year-over-year decline, with the difference primarily driven by a more aggressive mix of lower fares during the quarter and higher-than-expected ASMs;
• CASM (cost per available seat mile), excluding fuel and profit share, to be up approximately 0.5 per cent year over year, as compared with its previous guidance of up 2.0 to 2.5 per cent, with the difference primarily driven by lower-than-expected airport operating costs and lower marketing, general and administration expenses, as well as higher-than-expected ASMs;
• Fuel cost per litre to be approximately 69 cents, at the high end of its previous guidance of 67 to 69 cents.

The outlook information provided above is a preliminary estimate only, is subject to completion of WestJet's quarterly financial close processes and has not been reviewed by the company's auditors. WestJet does not intend to provide updates to guidance in future periods, except as may be required by law.

In the second quarter, WestJet launched non-stop service on several new routes. WestJet Encore began non-stop service between Toronto and Fredericton, N.B., on April 15, 2015, and between Calgary and Terrace, B.C., on May 3, 2015. WestJet also began non-stop service between Calgary and Yellowknife, NWT, as well as Toronto and Gander, Nfld., on May 3, 2015, and between Halifax and Glasgow, Scotland, on May 29, 2015.

In June, WestJet announced that it had selected London, England, as the first transatlantic destination for its wide-body Boeing 767-300ERW aircraft, with service from Canada through London Gatwick beginning in the spring of 2016. Gatwick provides WestJet guests with easy access to central London, as well as connectivity to other low-cost airlines with service to destinations in Europe and beyond. Further announcements on schedules, pricing and launch cities will be communicated later this summer, with service commencing in spring 2016.

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