Its the Nett Yield that matters
Quote:
Originally Posted by
forest
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.