AIR - Air NZ.

[Blue Skies]

Little profit in Trans Tasman routes anyway even when they do open up, and esp without Asian market feeding into them.
Just re reading an early June 2020 update to the market from AIR, saying based on hope of Trans Tasman & Pacific routes being open by September (2020) for business & leisure travellers a return to profit by August 2022.
Well that didn't happen & a bit over optimistic to say the least.

[macduffy]

Little profit in Trans Tasman routes anyway even when they do open up, and esp without Asian market feeding into them.
Just re reading an early June 2020 update to the market from AIR, saying based on hope of Trans Tasman & Pacific routes being open by September (2020) for business & leisure travellers a return to profit by August 2022.
Well that didn't happen & a bit over optimistic to say the least.

Does anyone have a feel for AIR's profitability split - domestic/trans Tasman/international pre Covid?
There's a lot of domestic traffic back in the skies and AIR's short term prospects may not be as dire as some are predicting.

Disc: Not holding but mildly interested.

[mikelee]

It was 1/3 for each sector pre-Covid I believe.

[winner69]

Here comes 2 bucks any day soon

Almost back to the good old days

[Blue Skies]

Here comes 2 bucks any day soon

Almost back to the good old days

Should have listened more to those new investors on sharesies, knew what they were talking about after all.

[Snow Leopard]

I am not convinced that it is anything but seriously overpriced.

[mikelee]

fingers crossed that bubble don't burst too easily

[winner69]

Wonder how beagles short is coming along.

[McPussPuss]

Wonder how beagles short is coming along.

Careful, that sounds libelous.

A winter trans Tasman 'boom' could be great timing for a cap raise.

[Arbroath]

I am not convinced that it is anything but seriously overpriced.

as they say opinions are like noses (everybody has got one) but I agree the valuation is ridiculous.

Right now the balance sheet is insolvent and they only exist at the behest of the NZ Government (no fault of Air NZ of course).
Valuing the equity at NZ$2.1b is bold as they will have to raise over NZ$1b, maybe NZ$1.5b and I wonder what price they will do that raising at? The amount of value destroyed through cash burn and mothballed planes is enormous but the equity is supposedly worth 2/3rds of the pre-virus levels when they were raking in cash, paying good dividends and had a decent balance sheet. I have never seen a valuation make less sense than this one but GLTAH. As a previous long term holder I watch with interest and we'll see what happens...