AIR - Air NZ.

[winner69]

Close week 215 - down 11 cents for the week

Not a good week. Was it the operating stats? Or just punters don't like AIR any more?

One consolation - after the last decent weekly fall there was 4 UP weeks

[couta1]

Close week 215 - down 11 cents for the week

Not a good week. Was it the operating stats? Or just punters don't like AIR any more?

One consolation - after the last decent weekly fall there was 4 UP weeks

Bigger players despatching this week, retail fish just have to go with the current.

[Baa_Baa]

Close week 215 - down 11 cents for the week

Not a good week. Was it the operating stats? Or just punters don't like AIR any more?

One consolation - after the last decent weekly fall there was 4 UP weeks

Maybe more appealing for some to take the profit from the $2.02 base than wait for the dividend and risk (more) capital losses returning to new lows? Without broker trading reports one has no idea who is moving the market.

[Beagle]

Close week 215 - down 11 cents for the week

Not a good week. Was it the operating stats? Or just punters don't like AIR any more?

One consolation - after the last decent weekly fall there was 4 UP weeks

Yes and last months Op stat's weren't especially flash either. Was catching up on some back programs of Madam Secretary last evening and normally fast forward through the adds but did notice that earlier this month they had an Asia sale and their special was $599 each way to Hong Kong, (this week in yet another sale to Asia where their loads are barely making money at only 72.5%) those same fares are now only $499 each way. I believe this is indicative of the yield pressure as airfares to Vietnam were also only $499 each way...It would appear they are struggling to fill the plane to an acceptable level on some routes.

When Cathay Pacific came out this week and said their yields are under intense pressure that has to be a bit of a concern too, note their average load factor is running at just over 85%, a load factor AIR can only dream about on their Asian routes at present.

Special fares by all airlines have been the norm now for many, many months and consumer fatigue regarding same was a hot topic at the recent international IATA conference as reported on CNBC. AIR's recent load factors despite frequent sales at very attractive prices supports anecdotal evidence that the consumer is generally "getting used too" cheap travel" and doesn't react as strongly to new sale initiatives. By way of example, you can jump on www.grabaseat.co.nz right now and bear in mind this daily special has been up on that website all day and there's hundreds of seats left to LA for only $473 and you can get back for as little as $467. (Thousands left to Hong Kong and Vietnam). These are extraordinary fares for a flight of that distance and yet consumers are not hovering them up with any great appetite like they would have months ago before they were bombarded by cheap fares by all and sundry. It gives the keen observer and inkling of the current yield / demand environment in which AIR operate.

CNBC reported that New aircraft orders at the recent Farnborough biannual airshow were well down on the last show, airlines appear to be becoming more cautious as consumers become more blasé about cheap travel.

Disc: Took some money off the table in regard to AIR this week at $2.24. Still holding some. I think company guidance for 1H FY17 (which will most likely be forthcoming at the annual meeting in just over two months time) may disappoint some investors.

[couta1]

Not too many excellent divvy paying stocks left at a good price that compare with Air if you look around on the current rampant NZX.

[Beagle]

Agree with you mate that AIR is a great yield story and all five brokers covering them rate them as a hold and in a nutshell that's also how I see it. I also agree that many stock prices are very stretched and trading on very demanding PE's and by contrast AIR is a good value play.

[Beagle]

AKA - you get what you pay for.

http://www.nzherald.co.nz/business-t...lery_id=162976

[RTFQ]

AA, Hawaian and United all beating earnings last week.

As an aside big negative news about to be released regarding the ineffectiveness of health supplements and fish oil, if one is into health supplement companies.

[see weed]

Air Ann. results due out end off August 2016? Last year results were on 26 August.

[Raz]

Maybe more appealing for some to take the profit from the $2.02 base than wait for the dividend and risk (more) capital losses returning to new lows? Without broker trading reports one has no idea who is moving the market.

Way too busy to comment last week however that is exactly what i did...run up was not as compelling as I had hoped given expected dividend range..