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 share prices dropped almost 7% last week, despite recording record profit in FY2018.  Qantas Group reported (23-Aug-2018) the following financial highlights for the 12 months ended 30-Jun-2018:

  • Revenue: AUD17,060 million (USD13,224 million), +6.2% year-on-year;
    • Passenger: AUD14,715 million (USD11,407 million), +6.2%;
    • Freight: AUD862 million (USD668.2 million), +6.7%;
  • Total underlying costs: AUD15,274 million (USD11,840 million), +5.6%;
    • Labour: AUD4300 million (USD3333 million), +6.6%;
    • Fuel: AUD3232 million (USD2505 million), +6.4%;
  • Underlying EBIT: AUD1786 million (USD1385 million), +12.3%;
    • Qantas Domestic: AUD768 million (USD595 million), +19.1%;
    • Qantas International: AUD399 million (USD309 million), +6.7%;
    • Jetstar Group: AUD461 million (USD357 million), +10.6%;
    • Qantas Loyalty: AUD372 million (USD288 million), +0.8%;
  • Underlying profit before tax: AUD1604 million (USD1243 million), +14.5%;
  • Net profit: AUD980 million (USD760 million), +14.9%;
  • Passengers: 55.3 million, +3.0%;
  • Passenger load factor: 83.2%, +2.6ppt;
  • Revenue per ASK: AUD 8.31 cents (USD 6.4 cents), +3.9%;
  • Cost per ASK: AUD 7.26 cents (USD 5.6 cents), +2.7%;
  • Cost per ASK excl fuel: AUD 5.15 cents (USD 4.0 cents), -2.4%;
  • Total assets: AUD18,647 million (USD14,455 million);
  • Cash and cash equivalents: AUD1694 million (USD1313 million);
  • Total liabilities: AUD14,688 million (USD11,386 million).

Air New Zealand

Despite announcing its operating profit fell by 1% in FY2018, Air New Zealand shares remain relatively unchanged. Air New Zealand reported (23-Aug-2018) the following financial highlights for the 12 months ended 30-Jun-2018:

  • Operating revenue: NZD5485 million (USD3919 million), +7.4% year-on-year;
    • Passenger: NZD4679 million (USD3343 million), +6.9%;
    • Cargo: NZD370 million (USD264 million), +10.4%;
  • Operating costs: NZD4193 million (USD2996 million), +9.2%;
    • Labour: NZD1294 million (USD925 million), +2.6%;
    • Fuel: NZD987 million (USD705 million), +19.3%;
  • Operating profit**: NZD540 million (USD386 million), -0.9%;
  • Profit before tax: NZD540 million (USD385.8 million), +2.5%;
  • Net profit: NZD390 million (USD278.7 million), +2.1%;
  • Passengers: 17.0 million, +6.4%;
  • Passenger load factor: 82.8%, +0.2ppt;
  • Passenger revenue per ASK: NZD 10.6 cents (USD 7.6 cents), +1.8%;
  • Total assets: NZD7846 million (USD5606 million);
  • Bank and short term deposits: NZD1343 million (USD959.6 million);
  • Total liabilities: NZD5670 million (USD4051 million).

Oil Prices Update