"New airline joins wave of services between Auckland and China"
I am losing track - did we know about this one already or not?
Best Wishes
Paper Tiger
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As we approach peak stuff one of the beneficiaries will be the airline industry - and I reckon Air New Zealand are in a position to do better than most.
Possibly F18 will be better than F17
Either way winner, the good times are behind us now, the 'cycle' is in control and earnings will reduce for the foreseeable future, despite all time low input costs. As pointed out, the wide spread in guidance gives little confidence and barely a week goes by without some other airline making moves on Air's patch. Thank goodness for a monopoly on local air travel, but still that's no basis for predicting where the SP will end up, before it's up again.
That near monopoly on local air travel is very lucrative
Could see improved profits locally - all those tourists flying around the country and significant operational efficiencies still flowing through to the bottom line, like those little 19 seater jobs they have just taken out of service were apparently losing them a couple million a month - things like this all add up
Whatever i reckon F17 in excess of $500m (2nd highest profit ever) - on reflection not much point in them fine tuning the guidance this early into the year
They sitting on 10 grand of my cash for travel next year - jeez I forgot that the first $50m/$60m or so of each years profit is the return on prepaid airfares
Based on the story so far my analysis comes up with a pretax profit for AIR for the 2017 financial year of:
$540,843,082.52
But in my heart of hearts I expect things to get a little tougher and the pretax result will actually be
$488,527,851.52
Best Wishes
Paper Tiger
Disc: not totally convinced about the 52c
On those numbers and at the current price, are you tempted to have a dabble?
I see oil is knocking at $50. I hope it goes up. What's the point of having super fuel efficient Dreamliners with oil being so cheap :)
Time they all took away the fuel surcharge