AIR - Air NZ.

[RTM]

Stats out for June

Where's eval ...needs to tell us what the stats mean

Hope he hasn't got into trouble with the whores on Seventh Avenue - not that I know if there actually are whores on Seventh Avenue but Simon and Garfunkel said there was.

All sounded ok to me until I got to this bit....

"For the financial year to date, Short Haul passenger revenue per ASK (RASK)*
decreased 4.2% and Long Haul RASK* decreased 12.9%. Removing the impact of
foreign exchange, Group-wide RASK* decreased 6.3%, and Group-wide yields for
the financial year to date decreased 5.0% on the same period last year. "

[winner69]

Those stats imply H2 passenger revenues were down slightly on last year. This was better than the 4% decline in H1.

So FY passenger revenues down about 2%. Profit will be lower (although second best ever in 75 years operation) and cash flow probably less than lasy year as well. Growth company ....hmmm .....but F18 will be heaps better so no worries

[Joshuatree]

Are we up for a special div this year or just re a 10c for the half ? .Sorry if opinions have already been expressed here. We are up to the 300th page and I'm not scrolling too far back.

[sb9]

Lacklustre trading volume over past few days...bit like their latest op stats!!!

[Beagle]

Nothing wrong with operating stat's, sound. Its all about yield per RPK and its a tale of two halves. 2H yield dramatically better than first half when 10 new entrants launched new services into N.Z. First half profit speaks for itself and second half will shortly too and we're already into 1HFY18 lapping the same period in IHFY 17 when yields were artificially low due to 10 new entrants launching opening specials for months on end at unsustainably low prices. Expecting minimum of $575m profit before tax for FY17 and outlook is very sound indeed, no worries.

[Robomo]

Nothing wrong with operating stat's, sound. Its all about yield per RPK and its a tale of two halves. 2H yield dramatically better than first half when 10 new entrants launched new services into N.Z. First half profit speaks for itself and second half will shortly too and we're already into 1HFY18 lapping the same period in IHFY 17 when yields were artificially low due to 10 new entrants launching opening specials for months on end at unsustainably low prices. Expecting minimum of $575m profit before tax for FY17 and outlook is very sound indeed, no worries.

Don't forget the 'young fuel efficient fleet' as well!

[Joshuatree]

Have refreshed myself now ;the sale of virgin led to the special div last time. Forecast yield re 6% Gross D/Y on 73.5% payout ratio,.? Yield dropped a lot with s/p increase.Average t/p on 4traders still $2.81 and $2.45 at craigs. What will the overseas holders do(they own half the NZX and prob a lot more % in AIR atpit)? Holding atp.

[Marilyn Munroe]

Jetstar been pulling back on frequency on regional routes over winter citing lack of demand, (posted a link verifying same a while back). I think AIR have them on the back foot or is it simply that Jetstar keep shooting themselves in the foot with their "service" level's and increasing people have simply had enough ?, either way I don't have any concerns on that front.

Propstar operates old bangers which Queer and Nasty Airlines couldn't sell so sent them across the ditch to extract some cash for their remaining economic life. If Propstar isn't making money when the issue of replacement aircraft comes around Queer and Nasty Airlines may say yeah-nah.

This will further embed Cullen Airlines domestic monopoly to the delight of shareholders but cause pain to provincial travelers wallets.

Boop boop de do
Marilyn

[barleeni]

AIR ends the day with a market cap of $3.8b, and expecting npat of $575m (likely to be exceeded!?!?).
FBU ends the day with a market cap of $5.6b, and expecting npat of $525m (likely to be lower?!?!)

Somethings wrong with this picture!!!!

I know which one id feel safer holding

(disc. hold AIR do not hold FBU)

[workingdad]

It could be interesting to compare this year's NPAT versus last years (not including Virgin sale), maybe not as big of an income/profit gap as the bottom line alone indicates?

Earnings before taxation last year 806 million (200million in tax).

There's cargo earnings to come into it with further anticipated growth on last year.

RASK may be down from todays stats but how many additional ASK flown has there been with the addition of many routes?

Air had 68% fuel hedging in place for this year as early as they could maximising hedges allowances at some good rates and even with the additional kms flown I wonder if the major expense of fuel is on par with last year but they did hedge USD at 67.5 (575 million worth).

I don't have a great deal in AIR so not focused on it and still have a lot to learn about all things share trading but my thoughts for whatever they are worth is AIR is performing very well and managed a far better year than predicted by many but maybe just within their own broad estimate of 400-600million NPAT and a very solid year indeed