AIR - Air NZ.

[forest]

Spot the trend here, competition has an effect.
All yields for the financial year to date,

Nov-15 Group-wide yields were down 4.5%
Dec-15 Group-wide yields were down 4.6%
Jan-16 Group-wide yields were down 4.9%
Feb-16 Group-wide yields were down 4.7%
Mar-16 Group-wide yields were down 5.3%
Apr-16 Group-wide yields were down 5.5%
May-16 Group-wide yields were down 5.5%
Jun-16 Group-wide yields were down 5.7%

[winner69]

Spot the trend here, competition has an effect.


Nov-15 Group-wide yields were down 4.5%
Dec-15 Group-wide yields were down 4.6%
Jan-16 Group-wide yields were down 4.9%
Feb-16 Group-wide yields were down 4.7%
Mar-16 Group-wide yields were down 5.3%
Apr-16 Group-wide yields were down 5.5%
May-16 Group-wide yields were down 5.5%
Jun-16 Group-wide yields were down 5.7%

Be interesting how new year starts eh

Probably continue the trend and be >5.7%

[BIRMANBOY]

That's independent....not stubborn, Couta. Birmans are extremely amenable (as long as their desires are catered too..... Tigers are obviously a little more difficult but yes, hard to argue with a rampant tiger even if he is closer to Tigger than Tiger.

A very considered post indeed. They say you can't teach an old dog new tricks but I myself have always found cats to be the most stubborn of creatures.

[Beagle]

Spot the trend here, competition has an effect.


Nov-15 Group-wide yields were down 4.5%
Dec-15 Group-wide yields were down 4.6%
Jan-16 Group-wide yields were down 4.9%
Feb-16 Group-wide yields were down 4.7%
Mar-16 Group-wide yields were down 5.3%
Apr-16 Group-wide yields were down 5.5%
May-16 Group-wide yields were down 5.5%
Jun-16 Group-wide yields were down 5.7%

You might like to consider the monthly cost of jet fuel consumed as it came down and AIR's previous expensive fuel hedges came off, their average cost in the first half was circa $U.S.60 barrel. If such information were available you'd probably find their net profit from operations remained broadly consistent....probably why despite these yield reductions they've retained their profit forecast before unusual items of $800m before tax. Fuel is roughly 20% of their operating cost so if the cost has halved from the previous year, (they locked in maximum allowable hedging at very close to the bottom of the oil cycle in January around U.S$30 barrel) surely its not all that difficult to understand they're making excellent money notwithstanding the yield decline. At the risk of being Dogmatic people might like to consider if a super low forward PE of only 4.6 covers an absolute multitude of potential competition evil's !

BB you should stop passing off your time expired uneaten jellymeat to other cats, its no good for them.

[forest]

Roger we both look at AIR differently at this part of the business cycle, you put more importance on the fuel cost reduction, some of us see group yields and competition a more important measure. This makes the market .

[couta1]

That's independent....not stubborn, Couta. Birmans are extremely amenable (as long as their desires are catered too..... Tigers are obviously a little more difficult but yes, hard to argue with a rampant tiger even if he is closer to Tigger than Tiger.

Thanks for the correction BB, much appreciated. I see there's a flying Tigger for sale on Trademe, you attach him to the ceiling and he fly's around to his hearts content without leaving the room but hey we have no need of such a toy around here, now do we.

[Beagle]

Roger we both look at AIR differently at this part of the business cycle, you put more importance on the fuel cost reduction, some of us see group yields and competition a more important measure. This makes the market .

Fair enough Forest but the fact is yield and fuel costs are inextricably linked matters in the aviation industry so to focus on one thing risks myopic vision but as you say it takes two sides to make a market, we can certainly agree on that

[Beagle]

Be interesting how new year starts eh

Probably continue the trend and be >5.7%

Delta's yields were down 7% year on year in July which shocked the market and yet they still trade on a forward PE of 6, Hmmm. That's with heaps of extra competition from the Govt owned sand airlines encroaching on their territory. No love lost between Qatar and Delta I tell ya. They fight like cats and dogs. http://travelskills.com/2016/04/18/d...atar-quandary/

[skid]

I just read(at the dentist office in Thailand,yesterday)that Thai air has made a loss due to new competition from discount airlines----food for thought.

disc. they are one of the best Ive flown with,but you cant beat cheap, sometimes.---We flew MAL --they were good,with great service--had to layover in KL,which was the only downside(a few extra hrs to get to Bkk---Thai is direct)--but with a savings of $500 it was worth it.

[skid]

Delta's yields were down 7% year on year in July which shocked the market and yet they still trade on a forward PE of 6, Hmmm. That's with heaps of extra competition from the Govt owned sand airlines encroaching on their territory. No love lost between Qatar and Delta I tell ya. They fight like cats and dogs. http://travelskills.com/2016/04/18/d...atar-quandary/

Is it good news that others are down more than AIR or bad news that the airline industry is not doing well atm?

What Im seeing is a major fall for AIR(yes,I got caught as well) and no bounce.--and not much room for markets to appreciate?