South Pac Share and Oil Price Weekly Update

Each week the Blue Swan Daily brings you a snap shot of the key share and oil prices related to all things travel and aviation.

Qantas Airways:

Qantas share buy back reached 75% of total authorisation this week. The carrier has AUD97.9 million (USD74.2 million) remaining of its total share buy back authorisation of AUD373 million (USD282.6 million).

The Australian Competition and Consumer Commission (ACCC) also issued a draft determination in respect to the application by Qantas and Jetstar for revocation of authorisations A91314 & A91315 and substitution of new authorisations A91600 & A91601. The two airlines applied on 12-Sep-2017 for the reauthorisation covering continued coordination involving Qantas and Jetstar branded low cost carriers (Jetstar Airways, Jetstar Asia, Jetstar Pacific and Jetstar Japan) and as applicable, the full service airline shareholders (Vietnam Airlines and Japan Airlines). These arrangements were authorised by the ACCC for five years in Mar-2013 (A91314 & A91315) with reauthorisation sought for a period of ten years. ACCC proposed to re-authorise the arrangements for a further five years with submissions from interested parties sought prior to 15-Dec-2017. A final determination is scheduled for Feb-2018.

Virgin Australia:

Virgin Australia shares have held the gains made in the previous week. The carrier’s stock closed trading on 16-Nov-2017 at a price of AUD0.23 per share (USD0.1739) and reached an intra-day high of AUD0.2825 per share (USD0.2135) on 17-Nov-2017. This amount was held for the remainder of the week and remains today.

Regional Express:

Regional Express (Rex) deputy chairman John Sharp provided the following highlights for the carrier’s operations and financial results FY2016/17:

  • Rex Group quadrupled operational profit before tax to AUD17.8 million (USD13.5 million);
  • The improvement was brought about by the modest recovery in passenger revenue from Rex’s traditional network, along with the contribution from Western Australia routes, lower fuel prices and slight improvement in the USD exchange rate;
  • Passenger numbers: +3%;
  • Yield: +3%;
  • Traffic and yield revenue benefit of AUD7 million (USD5.3 million);
  • Positive new developments in FY2016/17 included:
    • Commenced operations of new Sydney warehouse;
    • Completed acquisition of an aircraft painting hangar in Wagga Wagga;
    • Sale of all four Learjets previously used by Pel-Air for its defence contract;
    • Completed first full financial year medivac operations from Singapore;
    • AAPA training business completed its first graduation of Vietnamese cadets.


Monthly Share Price Snapshot:

Source: ASX

Oil Prices Update: