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.

Monthly Share Price Snapshot:

Key news stories of the week

Qantas Airways:

Qantas issued an update on the level of foreign interest in the carrier’s issued share capital. As of 04-Dec-2017, foreign persons potentially held relevant interests in 46.7242% of the issued share capital of Qantas. The Qantas Sale Act and the Qantas Constitution provide that foreign persons are permitted to hold relevant interests of no more than 49% of the issued share capital of the airline.

Qantas Group CEO Alan Joyce said the airline has a “very disciplined” approach to return on invested capital (ROIC) and must make large fleet investments to ensure it is optimising the use of its capital (New Zealand Herald, 14-Dec-2017). Mr Joyce noted the “big use of our capital” was AUD4 billion (USD3.1 billion) invested in replacing ageing Boeing 747s with A380s, along with renewing Jetstar’s fleet and investing in its service and product, including fitting new seats to 737s and A330s and rolling out new airport lounges at major hubs in Australia and globally.

Qantas Group reported (Dec-2017) its contribution to the Australian economy, as calculated by Deloitte Access Economics, totalled AUD11.6 billion (USD8.9 billion) in FY2017. According to the economic impact study, Qantas and Jetstar:

  • Represented 0.7% of Australia’s GDP;
  • Supported 56,414 Australian jobs;
  • Contributed AUD10.7 billion (USD8.2 billion) to the tourism industry (an increase of AUD300 million [USD228.9 million] from FY2016);
  • Supported over 100,000 jobs, approximately one in every nine in the tourism industry.

 

Oil Prices Update