TIMMEEEE
3rd Apr 2003, 06:08
With no protection via fuel/currency hedging and falling numbers of international tourists the low cost carriers are not strictly immune in this case.
Couple that with QF dumping capacity onto the domestic market and it is really a foregone conclusion.
Fromm AAP Reuters:
Virgin Blue profit forecast downgraded
6:39 AM April 3
Virgin Blue Airlines is expected to struggle to meet its 2002-03 profit forecast. In the wake of Qantas's 15 per cent profit downgrade on 28 March 2003, JP Morgan has sliced 18 per cent off Virgin's likely earnings to $A115 million for the full year. The downgrade was based largely on the likelihood of Qantas introducing more domestic services to help compensate for a pruning of international routes. The flagship carrier has expressed concern about falling international bookings, flowing from terrorism and the Iraqi war. JP Morgan's suggested Qantas profit for 2002-03 is $A442 million.
Couple that with QF dumping capacity onto the domestic market and it is really a foregone conclusion.
Fromm AAP Reuters:
Virgin Blue profit forecast downgraded
6:39 AM April 3
Virgin Blue Airlines is expected to struggle to meet its 2002-03 profit forecast. In the wake of Qantas's 15 per cent profit downgrade on 28 March 2003, JP Morgan has sliced 18 per cent off Virgin's likely earnings to $A115 million for the full year. The downgrade was based largely on the likelihood of Qantas introducing more domestic services to help compensate for a pruning of international routes. The flagship carrier has expressed concern about falling international bookings, flowing from terrorism and the Iraqi war. JP Morgan's suggested Qantas profit for 2002-03 is $A442 million.