Fourth quarter net income of WestJet Airlines Ltd. plummeted by 45.9% due to decrease in air travel and weather- related expenses. Net income of $40.8-million (32 cents a share) was reported during the fourth quarter in comparison to $75.4-million (57 cents), for the same period in 2007.

Shares of discount carrier WestJet Airlines Ltd. Dropped more than five per cent after the company stated lower fourth-quarter earnings from the previous year.

"There continues to be a tremendous amount of angst regarding the general state of the world economy, and the year-end financial results of all industries, especially the airline sector, have shown substantial declines year over year," said WestJet CEO Sean Durfy. He also commented that WestJet was not the only company facing this situation, all businesses have been forced into a new economic reality. Lending is tight and consumers hesitate to spend. This has led to cost cutting measures by the companies.

Durfy said the company ended 2008 with $820 million in cash. The amount is proposed to be utilized to fund expansion in new markets. WestJet has plans to grow its network in 2009. But due to delay of aircraft delivery by Boeing it will only expand its capacity by 6% to 7% in the first quarter and by 5% for the year. Originally the plan was to expand the capacity by 10% in the first quarter and by 8% in 2009.