AIR - Air NZ.

[Beagle]

Fair enough PT. Its been a VERY busy week with quite a significant number of companies in which I hold shares reporting and I really haven't had the time to look in any depth whatsoever at QAN or to be honest any other company in which I don't have a direct financial interest. Been busy wrapping my head around ATM's stunning result and the SUM one as well as several others. AIR good too and solid outlook pleasantly surprised me. Nice to see you back on the forum, where have you been ?

[Raz]

Bingo ! Almost every metric looks better when you're not paying tax because of a $2.8 Billion dollar loss in 2014 !
Tax losses as at 31/12/17 estimated by QAN to now be just $368m.
So now we finally have our answer to the difference in the PE ratio's between these two companies over recent years.
AIR has been paying full tax at 28%, QAN next to nothing.
All that changes when QAN starts paying tax again, assuming they don't incur another $2.8 Billion loss in the meantime.
Noodles you reading this ? Here's the answer to the question you asked me the other day.

CAPEX also a factor:

http://www.nzherald.co.nz/business/n...ectid=12001090

[dreamcatcher]

Solid and improving results from AIR been rewarded by positive Analyst Ratings Goldman $3.22

11cent tax free dividend and fleet fully operational shortly will be exciting times again

[King1212]

Solid and improving results from AIR been rewarded by positive Analyst Ratings Goldman $3.22

11cent tax free dividend and fleet fully operational shortly will be exciting times again

darn...should bought in yesterday..........

[value_investor]

Given in the six month period, the company had to fair with a dramatic rise in fuel costs,their new shiny toys breaking down as well as the fuel shortages at AIA for a short period of time, its a good result. While I'm not fond of companies skewing their results like they did in the presentation. They have done well to get to where they did in the 6 months.

I'm not too sure about how they will hit their guidance of exceeding last years result. That part of the presentation, needed more clarification. They have a lot of catching up to do and I sympathise because its not entirely their fault. Such is the nature of the airline game. Either, fuel costs push back considerably right now or they go through some dramatic cost cutting measures.

In terms of special dividends being paid in the future, the gearing is healthy in the 45-55% range at 52.4% so the headroom is their to gradually ramp up dividends if need be. Keep in mind the airline business is a cruel one, in 6 months we had all those things happen I stated above. Imagine what can happen between now and FY2020!

[workingdad]

http://www.nzherald.co.nz/nz/news/ar...ectid=12001697

Obama coming

[Beagle]

Some other Airline PE's
United 10.7
Delta 10.7
American Airlines 13.7
Qantas 10.9
AIR 8.5

[Oliver Mander]

The next wave of capex...
http://www.nzherald.co.nz/business/n...ectid=12001761

Although good that its planned, and there's no "legacy" to catch up on (ie, one faced by a certain Australian airline...)

[winner69]

Some other Airline PE's
United 10.7
Delta 10.7
American Airlines 13.7
Qantas 10.9
AIR 8.5

AIR’s PE will continue to trade at a ‘discount’ to those in the group you listed ...no matter how good a company it may be.

That’s the nature of the game .....a piddly company with its main listing on a minor exchange

[Beagle]

http://www.nzherald.co.nz/business/n...ectid=11999442

Interesting discussion about the extra cost of the fuel outage cost $5m, extreme weather events and Rolls Royce engine issues.
Interestingly the only engine option with the A350's is the Tent XWB a more power iteration of the same Trent 1000 that's given them some considerable grief.

My thoughts. Taking into account a significant number of challenges the company has faced in the six months to 31 December and since, I think the fact that their outlook is still for profit to grow over 2017's excellent result is pretty impressive.