Just confirming what I've been saying for a while on here now, a ripper of a year on the domestic front coming up.
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Hey couts - a neat looking plane parked up at WLG
Seems to be this Guns n Roses Airline
More competition for AIR?
Hi Winner,
Agree on your $60 oil average last year.
In late January 2016 when Brent oil hit a low ~ $30 barrel based on the conference call I listened into at their interim result in Feb 2016 I understand AIR very astutely went to their maximum allowable, (within their own pre-determined criteria) forward cover position on oil. I believe in Q1 FY17 AIR were enjoying utilizing that extremely well timed forward cover which together with more use of more fuel efficient planes augers well for some ongoing CASK improvement in IH FY17. CASK price pressure will be felt with higher fuel prices since then. They were also running the little Beechcraft 1900 planes last year that are fuel hungry for their size and have been on record saying they were losing $1m a month of that fleet last year which isn't repeated 1H FY17.
As we move into 2H FY17 they have recently taken delivery of another 3 Dreamliners (9 in total now) and are exiting their remaining fuel hungry 767's this half from March so we should see ongoing fuel efficiency gains this half, offset by slightly higher fuel prices but augmented by better yields, (recall the CPI data link I posted last week showing the substantial increase in international airfares in the last quarter of 2016).
I'm happy with my pick of ~ $240m, (its good for a bean counter to be conservative) and as I mentioned by e.mail last week I feel $260-280m is on the cards for 2H FY17.
Just my old steam powered abacus...probably miles off...we'll know a lot more in a few weeks when they report and I'll probably be miles out lol
You could well be right and the profit could be ~ $300 and CASK could really surprise to the downside. I think its possible CASK could be as low as 8.6 - 8.7 cents. Maybe we both get a big surprise in a few weeks :)
(Cask is cost per available seat kilometer in case anyone is wondering)
http://www.sharechat.co.nz/article/d...endar-2016html
Good for AIR, THL and some other stocks.
Looks like another drop in SP today. Must be that 2.09 valuation.
Dodgy valuing going on. More transactions. More cuts. I suppose.
I was going to sell some but I'll just take my 10c divi then
Whats the general view on the 2.09 valuation anyway. Accurate or not?