WestJet initiates quarterly dividend and announces normal course issuer bid

CALGARY, Nov. 3 /PRNewswire-FirstCall/ - WestJet Airlines Ltd. ("WestJet") is pleased to announce that the Toronto Stock Exchange ("TSX") has accepted its notice to make a normal course issuer bid to purchase outstanding common voting shares and variable voting shares on the open market in accordance with the rules of the TSX. Additionally, WestJet is pleased to announce its intention to pay a quarterly dividend.

"Our shareholders have been loyal and supportive of our growth over the years," said Gregg Saretsky, WestJet President and CEO. "We are pleased to announce our dividend and share buy-back program and provide our shareholders who continue to believe in our low-cost, high-value airline with an even greater return on their investment."

WestJet declared its initial quarterly dividend of $0.05 per common voting share and variable voting share, to be paid on January 21, 2011, to shareholders of record on December 15, 2010. "Our business model and our ability to consistently generate significant positive cash flow give us the confidence that we can maintain a healthy balance sheet while providing the necessary flexibility to fund our strategic objectives and growth plans," concluded Gregg Saretsky.

All dividends paid by WestJet are, pursuant to subsection 89(14) of the Income Tax Act, designated as eligible dividends, unless indicated otherwise. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit.

As approved by the TSX, WestJet is now authorized to purchase up to 7,264,820 common voting shares and variable voting shares, representing approximately five per cent of WestJet's currently issued and outstanding shares under the normal course issuer bid. On any trading day, WestJet will not purchase more than 117,583 shares. As of today's date, there are 139,727,125 common voting shares and 5,569,285 variable voting shares issued and outstanding.

WestJet is authorized to make purchases during the period of November 5, 2010, to November 4, 2011, or until such earlier time as the bid is completed or terminated at the option of WestJet. Any common voting shares or variable voting shares WestJet purchases under this bid will be purchased on the open market through the facilities of the TSX at the prevailing market price at the time of such transaction. Common voting shares and variable voting shares acquired under the bid will be cancelled. TD Securities Inc. will be appointed as the broker firm responsible for making purchases of shares under the bid on behalf of WestJet.

WestJet believes that, from time to time, the market price of its common voting shares and variable voting shares may not reflect their underlying value. At such times, the purchase of common voting shares and variable voting shares for cancellation may be advantageous to shareholders by increasing the value of the remaining shares. The purchase of shares will also offset the dilutive effect of the issuance of shares pursuant to WestJet's compensation plans.

Caution regarding forward-looking statements

This news release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. This information includes, but is not limited to, WestJet's intentions with respect to the normal course issuer bid and purchases thereunder, the effects of repurchases under the bid, WestJet's intention to pay a quarterly dividend and the timing and amount of its initial dividend, WestJet's operating performance and financial position, and WestJet's strategic objectives and growth plans.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors - many of which are beyond WestJet's control - affect the operations, performance and results of WestJet and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information. WestJet's dividend policy will be reviewed from time to time in the context of WestJet's earnings, financial condition, the need to retain earnings to fund future growth of the business of WestJet and other relevant factors and the declaration of a dividend shall always be at the discretion of the board of directors. Shareholders will be entitled to receive dividends only when any such dividends are declared by the board of directors, and there is no entitlement to any dividend prior thereto.

The forward-looking information in this news release is current to the date hereof, and is subject to change following such date. While WestJet may elect to do so, unless required by applicable law, it undertakes no obligation to update this information to reflect new information or circumstances at any particular time. Additional information about the risks and uncertainties about WestJet's business is provided in its disclosure materials, including its annual information form, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

About WestJet

WestJet is Canada's preferred airline, offering scheduled service throughout its 71-city North American and Caribbean network. Inducted into Canada's Most Admired Corporate Cultures Hall of Fame and named one of Canada's best employers, WestJet pioneered low-cost flying in Canada. WestJet offers increased legroom, leather seats and live seatback television provided by Bell TV on its modern fleet of 90 Boeing Next-Generation 737 aircraft. With future confirmed deliveries for an additional 45 aircraft through 2017, WestJet strives to be one of the five most successful international airlines in the world.

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SOURCE WestJet