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 began its share buy back, announced at the recent half year results meeting. The carrier plans on completing a AUD378 million (USD297 million) share repurchase allocation. This has included:

  • 26-Mar-2018: 1,662,208 shares for a consideration of AUD10 million (USD7.7 million);
  • 27-Mar-2017: 1,077,984 shares for a total consideration of AUD6.4 million (USD4.9 million);
  • 28-Mar-2018: 630,891 shares for a total consideration of AUD3.7 million (USD2.8 million);
  • 29-Mar-2018: 883,754 shares for a total consideration of AUD5.1 million (USD3.9 million).

Air New Zealand

Air New Zealand head of investor relations Lela Peters stated (21-Mar-2018):

  • The carrier has been in the target 45%-55% range in terms of gearing since FY2016, at 52.5% in FY2016, 48.6% in FY2016 and 51.8% in FY2017. The carrier has a Baa2 Moody’s credit rating (investment grade);
  • The carrier is “optimistic about the overall market dynamics”. Based upon the current market conditions and despite the increased price of jet fuel, the company is “still expecting 2018 earnings before taxation to exceed the prior year”;
  • The carrier reportedly 13 years of consecutive dividends and 15 years of consecutive profitability (based on the FY2018 outlook), with net profit after tax since 2003 and declared dividends since 2005;
  • Its ownership position, as of 31-Dec-2017, was 52% owed by the New Zealand Government, 38% by international institutional investors, 7% by New Zealand institutional investors and 35 by retail investors. The New Zealand Government has “no direct Board representation”, with the carrier having seven independent non-executive directors. The carrier is duel listed on the NZD and ASX stock exchanges, with 1.4 million average daily trading volume of shares.

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