Airlines r a great public service, endorsed by Skol.

[tricha]

tricha, Branson loves publicity and there's not much around at the moment so how to get his photo in the paper-peak oil.
Branson is hardly likely to sabotage his own business and a few years ago he said he was going build oil refineries.

http://news.bbc.co.uk/2/hi/uk_news/4255156.stm

Dick Branson speaks with forked tongue.

But I thought you were a big fan of VBA and Virgin is Richard, Skol.

I also thought a $1 a barrel reduction had a big gain to your airline bottom line. We are back to $80 a barrel and the world is awash with oil, hmm. Bloody OPEC winding back the tap when it gets to $70 and opening it, when it gets to $80, if it gets to $90 and the taps fully open, ouch.

Richard needs cheap fuel to fly profitabe. It looks like he is hitting the panic button and rightly so, cause the next button he will push will be the eject button. Without cheap fuel, airlines are going to crash and burn

[Skol]

But I thought you were a big fan of VBA and Virgin is Richard, Skol.

I also thought a $1 a barrel reduction had a big gain to your airline bottom line. We are back to $80 a barrel and the world is awash with oil, hmm. Bloody OPEC winding back the tap when it gets to $70 and opening it, when it gets to $80, if it gets to $90 and the taps fully open, ouch.

Richard needs cheap fuel to fly profitabe. It looks like he is hitting the panic button and rightly so, cause the next button he will push will be the eject button. Without cheap fuel, airlines are going to crash and burn

A dollar can make a big difference to airlines but not as much as their fuel hedging policy, that makes the big difference. Get it wrong and it can costs billions.
Your knowledge of airlines is sketchy to say the least tricha so better to stay away from the technical stuff.

[Skol]

Hey trich,
Check out the chart on VBA it's looking quite promising.
You don't have to own them forever, just make some money, OK?
As long as you admit it on this thread!

[Skol]

Airlines get paid in advance, right? If you buy a ticket you pay right then and there, sometimes passengers pay 2 years in advance. The airline has the use of this cash to do with as it wishes and no bad debts.
A while back AIR said it had 1 billion in cash.

[Phaedrus]

Skol, give up, mate. Stop wasting your time. This interminable argument should have ended long ago.
Any fool can see that there has been a clear winner.
(Those in any doubt, click here.)

[upside_umop]

Hey Phaedrus,

How far back does your chart go? Considering that over time*, the ROE has been in the negatives**, does this not mean airlines are not a good investment? Thats why the title is 'Airlines are a great public service...'

Perhaps we are going at different angles here....you can trade them, but dont walk away thinking they will be fine as an investment.

*Since inception of the first Airline companies

**Yes, thats means on average they have received more money from investors than they have given back!

PS Have you got an ASX oil index, rather than Brent Oil?

[STRAT]

Hey Phaedrus,

dont walk away thinking they will be fine as an investment.

Doubt Phaedrus has done that with anything Ooooomop, let alone Airlines

[upside_umop]

Haha yeah I agree, Ph is very onto it. Way more active than I could ever be!

Its just for those other 'investors' out there who would hope to buy and hold...

[Skol]

VBA is up today while the ASX is down about 1.2%.

Get on board trich, chop, chop! Everybody has to eat a bit of humble pie now & then. We'll understand.

Virgin Blue Holdings Ltd returned to profitability in the first half of 2009/10, maintained its annual earnings guidance and says it continued to see pressure on domestic yields.

The airline group reported a net profit of $62.5 million for the six months to December 31, the Brisbane-based company said in a statement on Wednesday.

This was a turnaround from a $101.4 million loss for in previous corresponding period.

Its underlying operating profit before tax was $80.1 million, up from $60 million.

Virgin Blue maintained its guidance for an underlying pre-tax profit for the full year of between $80 million to $110 million.

"However, while the board and management are of the view that the group is well positioned to take advantage of an improving market, they remain alert to the pace of the global economic recovery and the continuing competitiveness in domestic and international markets," it said in a statement on Wednesday.

"As previously advised, seasonality and competitive activity in the domestic market will put continued pressure on yields for the remainder of this year."

First half group revenue lifted 12.2 pre cent to $1.51 billion.

The underlying profit before tax excluding cash flow hedges, derivatives and V Australia start up costs was $75.6 million, up 34 per cent.

Group chief executive Brett Godfrey said favourable fuel price movements had the result but he was also proud that the group had achieved a decrease in the cost per available seat kilometre, excluding fuel, of 4.5 per cent.

"Any way you cut it, to continue to achieve cost reductions while we continue to grow our business and position it to rapidly and fully exploit any improvement in economic conditions demonstrates the remarkable commitment of each and every one of our team members and the resilience of our model," he said.

However, Mr Godfrey said the operating environment remained uncertain and pointed to ongoing concerns around the pace of the global economic recovery.

"We have a seasonal business and our traditionally busiest part of the year is the December first half - that and ongoing strong price competition will likely see pressure maintained on yield improvement for the remainder of this year," he added.

© 2010 AAP
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[Skol]

Unload the 'oilers' trich, another airline creaming it despite the recession.

Air New Zealand has more than doubled its profit for the half year ended December 31.

The airline posted a net profit after tax of $56 million for the period, up from $24 million for the same period the year earlier. Normalised earnings before tax were $96 million, up $70 million.

Chairman John Palmer said the fallout from the global financial crisis continued to make operating conditions difficult.

Revenues were down 15 per cent due to lower passenger numbers, cargo volumes and yields, but this was offset by lower fuel prices.

"Delivering a profit during this time is a reflection of the Management team’s focus on closely aligning capacity with demand and their ability to deliver innovative solutions to significantly enhance the airline’s competitive position," Palmer said,

Chief executive Rob Fyfe said the company has worked hard to adapt the business to reflect the lower revenue.

"As a result, we achieved an 11 percent reduction in non-fuel operating costs, with all operating costs reduced."

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