UPDATE 3-WestJet disappoints with outlook, shares dip

Wed Feb 6, 2013 4:18pm EST
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* Fourth-quarter earnings up 71 pct, raises dividend 25 pct

* Mixed views on company, Canada airline industry outlook

* WestJet aims to cut costs by C$100 million

* Initial Encore schedule to be released Feb. 11

* Stock falls about 1 pct on Toronto Stock Exchange (Recasts with details from conference call, more analyst comment)

By Nicole Mordant

Feb 6 (Reuters) - Canada's WestJet Airlines Ltd offered a disappointing revenue outlook for the current quarter on Wednesday, sending its shares lower, even as it posted a stronger-than-expected jump in profit for the final three months of 2012 and boosted its dividend.

The outlook raised concerns that Canada's No. 2 air carrier could find it hard to maintain its record of strong growth against the backdrop of a tempered economic outlook for Canada and heightened competition.

"Revenue growth is clearly decelerating. They are talking about modest growth in Q1. By the time you get to the fourth quarter they will be lucky to be flat," said Raymond James analyst Ben Cherniavsky.   Continued...