It was nice to see a reasonable increase in the SP yesterday along with the dividend. To be honest I was a little underwhelmed with the size of the dividend 10 cps but understand that they're making a huge investment in efficient new aircraft over the next few years. From memory on the whole green thing, C.L. told the 2014 annual meeting they're setting the airline to be profitable if and when $120 oil comes along again, which I suppose is inevitable at some stage.
In the short run now that all the good news on the recent half year result is out along with full year guiance it wouldn't surprise me to see some consolidation around the current level however what continues to impress is how resilient the airline's performance is, seen even in February's operating stat's at a time when some thought we were on the verge of another GFC or at least a second leg to the first one.
I remain of the view that AIR is highly likely to pay a special along with its final this year. AIR is in good shape, has retained around 67% of its first half earnings so its balance sheet is stronger by 20 cps in cash than six months ago and the recent small pop upwards in the currency will make the capex this year a little less expensive.
Blockhead - Market looks close to fully priced with the odd exception. This and scales look like good opportunities to me or maybe better still just reinvest back into AIR in terms of enjoying some travel :)