WestJet Profit Down As Alberta Economy Weakens

WestJet Airlines reported a smaller quarterly profit, hurt by its large exposure to Alberta, where the economy is weakening.

Net earnings fell to CAD$63.4 million in the quarter ended December 31, from CAD$90.7 million a year earlier.

Revenue fell 3.6 percent to CAD$958.7 million.

The company also said it incurred a pre-tax foreign exchange loss of CAD$10.1 million in the fourth quarter.

The airline's operating margin fell to 11.8 percent from 14 percent.

The economy of Alberta, known for its oil-rich resources, has been hit by a near 70 percent drop in oil prices since June 2014.

Jobless rates in the region, which is the energy-producing province of Canada, has risen to 7 percent in December 2015 from 4.7 percent a year earlier.