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:

Source: ASX
Source: ASX
Source: ASX

Key news stories of the week

Qantas Airways

Qantas Group CEO Alan Joyce said the carrier has been repurchasing shares as the most efficient method of returning cash to shareholders (Bloomberg, 05-Feb-2018). According to Mr Joyce, the airline has returned AUD2.6 billion (USD2.1 billion) to shareholders over the past four years via dividends, capital returns and a greater than 20% share buyback.

Alliance Airways

Alliance Aviation Services reported (07-Feb-2018) the following key highlights for its H1FY2017/2018 results:

  • Revenue of AUD117.2 million (USD91.6 million), +16.6% year-on-year.
    • Contract revenue met expectations with incremental increases in flight schedules for a number of clients;
    • Charter revenue improved in the latter part of the period, with a number of short-term contracts won;
    • Wet lease revenue was AUD13.0 million (USD10.1 million), up 116.7% as a result of the additional flying hours that were introduced during the course of FY2017. Alliance continues to provide contracted wet lease services to Virgin Australia and ad-hoc wet lease services to a number of other domestic carriers;
    • The three Regular Passenger Transport routes that commenced operation in Jul-2017 are performing as expected;
  • “Strong” statutory profit before tax of AUD10.3 million (USD8.1 million), up 18.4%. Profit increase was predominately generated through an increase in flying activity;
  • Operating cash flows of AUD21.3 million (USD16.6 million), +23.8%. Stronger cash flows allowed for continued debt reduction of AUD6 million (USD4.7 million) in the period;
  • Capital expenditure of AUD12.9 million (USD10.1 million), which included AUD8.2 million (USD6.3 million) to introduce additional aircraft into service and components that are available for lease;
  • Declared a fully franked interim dividend of AUD0.025 (USD0.0.0) per ordinary share for six months to 31-Dec-2017;
  • Improved financial performance and outlook of the Group has enabled the core debt facility to be refinanced with the group’s existing financiers for a three year tenor on improved terms;
  • Paid the final Austrian aircraft settlement during Jan-2018.

Oil Prices Update