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: ASK (Prices in AUD)

Key news stories of the week

Qantas Airways

Qantas Group released its First Half Financial Year results last for the six months ending 31-Dec-2017. CEO Alan Joyce reported the carrier achieved a record first half profit, generating an AUD976 million (USD761.1 million) underlying profit before tax. Mr Joyce said the result “comes in the face of some challenges”, including higher fuel costs, a competitive domestic market and international capacity growth. Qantas Domestic, Jetstar Group and Qantas Loyalty all reported record results, while Qantas International “held its own in a market that is producing some extremely low air fares”. According to Mr Joyce, Qantas International suffered a 6% decline in profit and achieved “a slight rise in unit revenue”. The portfolio of Jetstar-branded airlines in Asia was also profitable in H1FY2018. The Qantas board also announced a dividend of AUD0.070 (USD0.0546) per share, with an ex-dividend date of 07-Mar-2018 for shareholders on record as of 08-Mar-2018. The dividend will be paid on 12-Apr-2018.

Air New Zealand

Air New Zealand reported (22-Feb-2018) net profit result of NZD232 million (USD169.7 million) for H1FY2018 was driven by operating revenue growth of 5.6% year-on-year, with “robust demand across all markets and particularly strong growth in the short haul network”. The airline reported all time record passenger revenue of NZD2.3 billion (USD1.7 billion). Sustainable cost initiatives also contributed to the interim performance, with efficiencies offsetting the impact of inflation on unit costs, excluding an 18% increase in the cost of fuel. Cash flow from operations grew 27% to NZD479 million (USD350 million), driven by growth in cash operating earnings and a “strong working capital cash flow as the business grows”.

Oil Prices Update