AIR - Air NZ.

[tony64peter]

Group wide RASK down 9.3%. Group wide yield down 7.9%. They have made 1.4% in cost savings. Or is my logic flawed?

[boysy]

monthly stats are starting to paint a picture of competition starting to bite.

http://www.nzherald.co.nz/business/n...ectid=11788663

Passenger revenue in the first six months of Air New Zealand's financial year has fallen sharply, even when the impact of foreign exchange fluctuations are eliminated.

In an update to the NZX, the country's national airline said for the financial year to date, short haul passenger revenue through its preferred metric had fallen 6.3 per cent, while long-haul passenger revenue had slumped 14.3 per cent.

Air New Zealand's preferred metric is passenger revenue divided by the total capacity for the period, what it terms RASK.

When foreign exchange is eliminated, group-wide RASK fell 9.3 per cent, while yields, which represent passenger revenue per passenger kilometre flown fell 7.9 per cent.

For the month of December, Air New Zealand flew 1.59 million people, an increase of 5.4 per cent on the year earlier, although its aircraft weren't as full as a year earlier, with 83.5 per cent of all seats sold, down 1.5 per cent on December 2015.



This was mainly due to a fall in sales on flights to Asia, Japan and Singapore. 86.3 per cent of seats were sold on these services, down 5.6 per cent on a year ago. The airline had increased services in this region by 10.8 per cent, reflecting a new seasonal service between Japan and Osaka.

The percentage of seats sold on flights across the Tasman and the Pacific fell 2.7 per cent to 78.4 per cent. This was due to capacity rising faster than demand, with some routes switching to a larger aircraft and growth on the Perth and some Pacific Island routes.

Air New Zealand reported its best full year earnings in its 76-year history in August for the financial year which ended on June 30, 2016. Earnings before significant items and tax rose 70 per cent to $806m. Staff were paid a bonus to reflect the record results, while shareholders got a special one-off dividend.

At the time, the airline warned the outlook ahead was less rosy due to increased competition and rising fuel prices. It said it expected operating earnings for the 2017 financial year in the range of $400m to $600m.

The details are contained in the airline's monthly update to investors, which details December's market conditions. Air New Zealand's financial year runs from the beginning of July to the end of June. It's full half-year financial results are due to be released on February 23.

Air New Zealand declined to comment.

Shares of Air New Zealand rose 0.2 per cent or half a cent to $2.195. They've fallen 0.2 per cent since the start of the year.

[couta1]

Yawn,Yawn boysy, it's all baked into the current price and then some.

[Beagle]

https://www.nzx.com/files/attachments/251976.pdf

Looks reasonable to me and I it looks to me that they're on track to meet the mid point of their profit guidance. If it were not so I believe they would have provided updated guidance by now.

[boysy]

As long as they are within the guidance which was itself as wide as a 747 they can do as they please I would of thought. One has to question what result has me market and the outlook going forward priced in ?

[sb9]

https://www.nzx.com/files/attachments/251976.pdf

Looks reasonable to me and I it looks to me that they're on track to meet the mid point of their profit guidance. If it were not so I believe they would have provided updated guidance by now.

That's correct Roger, any major deviance from their forecast numbers would've prompted a trading update from the company. I think most of lower level of earnings are pretty much built into current sp and commentary at HY earnings next months re future outlook will determine how far the price can go.

[winner69]

That The Herald story gave the impression that revenues were down heaps - short haul 6.3% and long haul 14.3%. Using words like slumped implies disaster stuff.

Better get Paper Tiger to point out that things are not that bad eh = RASK is not revenues

How much revenues down PT - need an update we do

[Beagle]

That The Herald story gave the impression that revenues were down heaps - short haul 6.3% and long haul 14.3%. Using words like slumped implies disaster stuff.

Better get Paper Tiger to point out that things are not that bad eh = RASK is not revenues

How much revenues down PT - need an update we do

I think you might just have to "wing it" mate as Paper Tiger said a while back that he couldn't comment due to a "conflict of interest" Maybe he's on assignment with Tiger Airways
Anyway for what its worth the numbers looked slightly better in December than they did in November including year to date numbers.
Half year result is out in less than a month, on 23 February and I am sure we'll get a clear picture of how the year is progressing then and in the meantime this hound won't be panicked by any silly herald reporting and remains content to sit by the food bowl waiting for his next feed.

[Beagle]

http://www.sharechat.co.nz/article/c...kiwi-gainshtml

Inflation for the December quarter. excerpt

Other transport costs also rose in the quarter, with international air fares up 11 percent and domestic fares rising 9.7 percent on heightened demand ahead of the holiday period. On an annual basis, international air fares fell 5.7 percent and domestic prices were down 1 percent.*

[bonmaklad]

Still holding 100% of my portfolio. Almost Feb. ... guess I have to plan to sell at least some to pay the dang tax man