AIR - Air NZ.

[winner69]

AIR still on track for second highest ever profit in FY18

Somewhere between $526m and $800m

Pretty good

[couta1]

AIR still on track for second highest ever profit in FY18

Somewhere between $526m and $800m

Pretty good

Pretty good but all priced in, not many value stocks currently on the NZX, most heavily priced.

[Beagle]

Short haul going well while long haul revenues are in decline v last year

Overall revenue growth shrinking month by month - like August growth was lower than July and September lower than August. YTD revenue growth now about 4%/5%

How’s fuel costs going I wonder - still about us$70?

Spot Singapore JetA1 is probably around there at present but AIR have collars that will come into play in terms of hedging if it goes higher from here whereas many other airlines don't use hedging. I tend to simply focus on the macro picture and as mentioned RASK is up 2.1%. The key thing here is revenue per available seat kilometer and with slightly lower loads in Sept (sometimes flying empty to reposition to take on fuel load elsewhere) I think this is a credible result in the circumstances. Tehy'll have yet another code 2 (denser premium seat configuration) Dreamliner delivered soon so CASK will keep coming down.
A320 and A321 Neo's start arriving next year which keeps the momentum on CASK to the downside and updates the fleet to an even more modern fuel efficient standard. Good solid well managed business's trading on an undemanding PE of less than 10 aren't exactly in over abundance on the NZX and all that fresh incoming Kiwisaver funds money each month has to go somewhere... Continues to look like a good value hold compared to its peers and shareholders are being paid very well to wait for further growth unlike most other airlines who have pathetic dividend yields.

[Snow Leopard]

Of course hedging just gives you short term benefit in terms of reduced exposure to fuel price volatility at the expense of a greater overall price for your fuel.

If you only pay 20c on the $ increase (or decrease) this year you generally pay the other 80c down the track.

You can get fancy with this stuff but AIR appear to have paid an extra $4.26 per barrel in 1Q in hedging costs (but currently this reduces as the year goes on).

International competition continues apace with the opposition acquiring lots of fuel-efficient planes of their own and running their companies as well as any other.

Fortunately AIR has only half a competitor on the domestic front, but that could change...

And of course, at the end of the day, it is just another flying airline .

Best Wishes
Paper Tiger

[Fatboyj]

Promotional ad for Tiger Airways?

[winner69]

bloody bad enough sir john put his nose in the air trough but doing the same at the anz is enough to want you change banks

[couta1]

bloody bad enough sir john put his nose in the air trough but doing the same at the anz is enough to want you change banks

Looks after number 1 alright, pity he didn't have the balls to stick to his word in 2013 when he said publicly he would override the ComCom if they ruled against Chorus.

[winner69]

Looks after number 1 alright, pity he didn't have the balls to stick to his word in 2013 when he said publicly he would override the ComCom if they ruled against Chorus.

We need to show respect to those punters who thinks he’s the bees knees and not be too nasty about John....don’t we Couts.

[Beagle]

AIR still on track for second highest ever profit in FY18

Somewhere between $526m and $800m

Pretty good

Yeap, all good, no worries. Sir John will be Chairman of AIR in a few years, mark my words. Couta1, Politicians will unfortunately sometimes corner themselves into positions they have to wiggle out of, politics is politics and business is business.

[Clints]

Yeap, all good, no worries. Sir John will be Chairman of AIR in a few years, mark my words. Couta1, Politicians will unfortunately sometimes corner themselves into positions they have to wiggle out of, politics is politics and business is business.

True, but Sir John was a successful businessman before a becoming a successful politician.