Qantas Town Hall meeting hears of $720 million group loss
Qantas Town Hall meeting hears of $720 million group loss | Plane Talking
According to some present Qantas Group CEO Alan Joyce has told attendees at a recent ‘town hall’ style meeting with employees that the company will lose around $720 million in the current financial year, which closes on 30 June.
This guidance isn’t surprising, and who better to know the figures than the group CEO?
What is surprising is that having apparently shared market sensitive information with employees there has not been, up until 1130 this morning eastern time, a notification under continuous disclosure rules to the ASX. (Note below that Qantas says Mr Joyce was quoting market consensus, not offering guidance.)
The meeting was held early Monday afternoon at the Qantas Jet Base in Sydney.
Mr Joyce is reported to have said that the loss of $720 million had been offset by savings of $800 million during the same financial year. If this is true, this reflects poorly on the state of the group in this nearly over financial year. Mr Joyce has been group CEO since late 2008, a period notable for a cessation of dividend payments and a deeply damaged share price.
At the same meeting the CEO of Jetstar, Jayne Hrdlicka is said to have said that Jetstar had ‘no idea’ when Jetstar Hong Kong would be approved.
That is an appalling admission considering the waffle that was spoken about Jetstar Hong Kong to shareholders in 2012, with guidance that the airline would most likely be operating by the end of 2013 at the very latest.
Qantas has been asked to comment on these reports, or elaborate on them in any way it sees fit.
Update: Qantas responds:
You’d be wrong to rely on those reports, and it would be misleading to publish them.
Mr Joyce very clearly referred to market consensus – there was no guidance. The $800m refers to the transformation projects already underway, which were included in the recent Mac Bank presentation, lodged with the ASX.
There was no sense that one would offset the other, not least because that $800m isn’t realised in FY14.
Ms Hrdlicka did not say she didn’t know when JHK would be approved. She said it was taking longer than anyone had expected but that we remained confident
Interesting comment from a reader ..
Lots, and I mean lots, of expenses have been front-loaded into the 2013/14 reporting year. Get ready for the miraculous turn-around next year, bonuses all round and much back-slapping of the soon to be replaced CEO with an amazing golden parachute for having so successfully turned the business around in the space of only 12 short months.
It appears nothing affecting the airline industry today but look around the 11.30 time slot today...
If he indeed made this statement, isn't he required to notify the ASX first that something had changed, which will impact the share price?
It appears since this statement became public there was indeed an impact on the price.
- A 'matching firm' in the ASX is VAH....
- There appears no industry specific problem affecting 'airlines' (eg. fuel, accident)
- Therefore is could be assumed that such a statement has affected the share price of Qantas alone.....
- The Corporations Act 2001 says... the company is required to under Section 674 to disclose to the market any information if it was generally known would in the opinion of a reasonable person have an effect on the share price.....
