AIR - Air NZ.

[couta1]

And yet both are probably better, or at least less worse investments, than AIR at the present.

Best Wishes
Paper Tiger

Yeah right, perhaps you should follow your own advice re thinking first.

[Arbroath]

And yet both are probably better, or at least less worse investments, than AIR at the present.

Best Wishes
Paper Tiger

PT

are you seriously saying VAH and QAN are better investments than AIR? If so I think you've taken leave of your senses. AIR actually has a domestic franchise business to support it (QAN does too but definitely not VAH). AIR has made money consistently across the cycles post the Ansett debacle. Most other airlines globally not so much. Actually Southwest has a BBB+ investment grade rating in the US and AIR is BBB and QAN lost its rating only a few years ago when AIR was still profitable.

[workingdad]

yep, like you Couta1, revenue and RPK are only part of the overall FA of an airline, obviously profit and expenses are also a pretty major factor. As per those stats compare Qantas and VAH being higher on the ranking list and what divvy??

[iceman]

PT

are you seriously saying VAH and QAN are better investments than AIR? If so I think you've taken leave of your senses. AIR actually has a domestic franchise business to support it (QAN does too but definitely not VAH). AIR has made money consistently across the cycles post the Ansett debacle. Most other airlines globally not so much. Actually Southwest has a BBB+ investment grade rating in the US and AIR is BBB and QAN lost its rating only a few years ago when AIR was still profitable.

Or more to the point, are any airlines good investments at present ?
Many European airlines have come out in the last few days with gloomy outlook and profit warnings.
Lufthansa has changed their outlook from a healthy increase in profits to a profit downgrade saying a significant reduction in forward bookings has been noted, particularly long haul and mentions flights to Asia being dramtically hit. Shares fell 8% after the announcement.

Easy Jet says outlook has not been worse for a decade. Terrorist attacks and continuous strikes by airport workers across Europe have lead to thousands of cancellations. Shares down 4-5%.

Consolodated Airlines Group (BA & Iberia) have seen share price down around 30% since BREXIT.

Rynair said future uncertain and will now not introduce new planes as planned, to its UK business.

Wizz Air, Icelandair, Norwegian and SAS all warning of tough times ahead.

Delta Airlines reducing winter schedule to UK/Europe and United indicated it will do the same.

Not my cup of tea I´m afraid.

[Beagle]

Always appreciate your sound posts Iceman. No question terrorism is having an impact on the demand into / out of Europe. Its clear there are many bad apples in the barrel in term of refugees who have fled the Middle east conflicts.

Fortunately AIR has very modest capacity to fill on it's own planes into that part of the world.

[iceman]

That´s very true Roger although AIR´s profitable domestic network relies on tourists, many from Europe, to keep the planes full.
My post was more about pointing out some gathering clouds for the industry as a whole, clouds that are quite dark at present. Worth watching in my view mate.

[Raz]

That´s very true Roger although AIR´s profitable domestic network relies on tourists, many from Europe, to keep the planes full.
My post was more about pointing out some gathering clouds for the industry as a whole, clouds that are quite dark at present. Worth watching in my view mate.

Personally I'm stunned how quickly the world wide commercial airline outlook has turned.

Also best not to pixx off the locals especially if tourism were to drop off. See below, been waiting for this to be raised. When the weather is bad from Christchurch into Wellington or Queenstown you do not want to be on a ATR 72..chances are they will turn around and take you back to Christchurch. After the first few times this happened everyone now wants to book on the airbus which is now limited flights...

http://www.stuff.co.nz/travel/travel...rs-are-suckers

[emveha]

Wouldn't be surprised if the SP holds (or lightly rises) until the dividend is declared ... and steeply drops after it goes ex dividend.

Why should it drop (of more than the value of the dividend)?

[Fox]

Why should it drop (of more than the value of the dividend)?

Shareholders that may want out now might wait until it goes ex-div just to receive the juicy div. Also will be a few dividend strippers out there looking for the special dividend to take. This would put added selling pressure after ex-div.

[Snow Leopard]

PT

are you seriously saying VAH and QAN are better investments than AIR? If so I think you've taken leave of your senses. AIR actually has a domestic franchise business to support it (QAN does too but definitely not VAH). AIR has made money consistently across the cycles post the Ansett debacle. Most other airlines globally not so much. Actually Southwest has a BBB+ investment grade rating in the US and AIR is BBB and QAN lost its rating only a few years ago when AIR was still profitable.

Well I have consistenly over the entire time I have been on Sharetrader said that I do not believe that one should invest in any airline.

FYI Currently VAH has a domestic network and QAN has an investment grade rating.


Best Wishes
Paper Tiger