Seems Spark is the only safe haven at the moment, still up regardless of timing of results(Probably due to international investor influence)
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Must be couta's affect, aye;)
I'm happy with the results and glad to collect fully imputed divvys, market at times can be bit irrational.
Results in line with expectations. Not sure that's enough given increasing competition and the reduced appetite for risk ATM.
http://www.nzherald.co.nz/business/n...502602&ref=rss
Well, at least staff will be happy.
Happy people, happy corporate.
9.5c fully imputed final divvy is nice. 16c in total..nothing to sneeze at imo
Down to 2.59??? After a good announcement!
Uncertain times, not surprised really.
In no particular order
Cost per ASK down 5% to 10.5 cents $174m in operational savings due to fleet efficiencies.
Virgin expected to return to profit in FY16 (FY15 $29m loss)
Gearing target 45-55% currently 52% (That would be why no special divvy this year)
Very strong Operating cash flow $1.1 billion up (I think they said 50%)
$2.6 billion capex programme next four years 5 787-9's currently on hand as at today's date, 1 more due Q1 FY16 6 more in future years
8 new ATR's coming...the most efficient turboprop in the fleet
Young average fleet age, now 7.8 years forecast to decline to0 7.5 years and end of FY16
Commitment to get even more fighting fit
Digital transformation...aiming to be the leading airline in how they digitally interact with their customers
Growth FY16 11% overall, (mix is 8% domestic 15% international)
Advance sales to Housten and the new Bounses Aires, (sorry can't remember spelling of that city) going well
Efficiency drive centres around fleet simplification
All 747's gone, remaining 737's going in Sep 15
Beechcraft 1900's going
767 retirement programme commencing Mar 16
Simplification of fleet drives down costs, pilot costs spares e.t.c.
All A320 Jet fleet domestic and short haul
4 year $100m lounge upgrade program.
Airpoints membership up 17% including a 20% Australian increase...now 1.9 million members
Fuel - Current US Jet fuel $US60
Enjoyed fuel savings last year but based on current spot rates and forward cover there is a (this is HUGE), $293m efficiency gain to come in FY16 over and above the cost efficiency gains enjoyed in FY15.
Further...hedge losses of $70m less are expected, total fuel efficiency advantage at this stage based on current spot price and current forward cover on oil $363m !
Currency
92% hedged at an average rate of 77 cents
$80 pain in costs to come compared to last year based on current exchange rate taking into account above hedging..obviously this offsets some of the above mentioned $363m cost advantage.
Outlook
Christipher Luxon expects significant earnings growth in FY16. He really emphasised the word "significant" when he said that.
Consistency of Earnings
Company has been set up to operate profitably with $120 oil. C.L. emphasised we're running a business not an airline and we're looking to beat the historic cyclicality of earnings and adapt as we go.
Aiming for consistency of earnings.
Other comments in response to analyst questions.
Held ground on Tasman very well.
Not feeling slowdown like is in the media every day.
Feeling good about yield...some yield compression could be experienced as they grow the new routes to Housten and South America but advance bookings are going well
All parts of the network are profitable.
China, we've just had our best year ever.
Overall yields are good by industry standards.
In response to questions from Markus from UBS
Nominal decline in costs for Fy16 expected
Brief to op's team is to offset inflation increase.
New deal signed with union at 2% per annum locked in for 3 years...deal took 1 day to do, previously would have taken 3 months...free's up staff to work on growing the business rather than old traditional labour relations, sorry can't remember which union but I think you can take that deal as some sort of template.
Company expects profitable contribution from Housten and South American routes from day 1.
Apologies for lack on structure to this post...came straight off my messy notes taken from the call.
I welcome anyone's contribution if they listened to the call and I heard something a bit wrong, please feel more than free to express your viewpoint.
Great result and what was to be expected. As much as I wanted to hold my shares, I think it's safe to say that the smartest decision given the macro activities is to withdraw and this morning was a good exit point.
I do hope I am wrong, but given my own personal circumstances it's not worth the risk.
Good luck to other holders, I do hope that this is a short correction and Air NZ blossoms!
CEO on CNBC this morn. when asked about competition in NZ he said "bring it on". They've already been there done that and dealt to competition.Not buying or selling atp.I was lucky enough to buy in the $2.40's which gave me a comfortable margin of safety.Hope you folks who bought near the top re $2.99 when the thread was "euphoric" do well in the longer term.