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

Virgin Australia

Virgin Australia Group chair Elizabeth Bryan said the company is yet to short list CEO candidates to succeed CEO and MD John Borghetti. Ms Bryan said the carrier is seeking a CEO able to “take on the strategy we have got in place and continue to push it toward profitability”. As previously reported by CAPA, Mr Borghetti will not renew his contract after 01-Jan-2020.

Qantas Airways

Qantas Group announced plans to pay a fully franked dividend of AUD0.10 (USD0.072) per ordinary share and converted dividend payment amount of NZD0.1090 per ordinary share for New Zealand shareholders. Payment date for the dividend is 10 October 2018.

Qantas Group board resolved (31-Aug-2018) to distribute a further AUD500 million (USD359.4 million) of surplus capital to shareholders, including a 10% per share fully franked final dividend totalling AUD168 million (USD120.8 million) and an additional on market share buyback of up to AUD332 million (USD238.7 million). Qantas Group chairman Leigh Clifford said the company returned AUD1 billion (USD719 million) to shareholders through dividends and buybacks in FY2018, and paid AUD67 million (USD48.2 million) to around 27,000 non-executive employees towards FY2018 results.

Regional Express

Regional Express (Rex) reported (29-Aug-2018) the following financial highlights for the 12 months ended 30-Jun-2018:

  • Total revenue: AUD295.5 million (USD229.1 million), +5.2% year-on-year;
    • Passenger: AUD260.3 million (USD201.8 million), +4.4%;
    • Charter: AUD25.7 million (USD19.9 million), +12.0%;
  • Total costs: AUD271.9 million (USD210.8 million), +2.9%;
    • Labour: AUD107.7 million (USD83.5 million), +2.1%;
    • Flight and port operation costs: AUD55.3 million (USD42.9 million), +1.6%;
    • Fuel: AUD32.7 million (USD25.3 million), +5.7%;
  • Profit before tax: AUD25.1 million (USD19.4 million), +40.8%;
  • Net profit: AUD16.9 million (USD13.1 million), +34.0%;
  • Passengers: 1.2 million, +3.0%;
  • Load factor: 61.3%, +4.0ppts;
  • Average fare: AUD216.4 (USD167.7), +1.2%;
  • Revenue per ASK: AUD 33.8 cents (USD 26.2 cents), +8.0%;
  • Cost per ASK: AUD 31.8 cents (USD 24.7 cents), +7.1%;
  • Total assets: AUD275.2 million (USD213.3 million);
  • Cash and bank balances: AUD26.0 million (USD20.1 million);
  • Total liabilities: AUD75.7 million (USD58.7 million).

Oil Prices Update