QANTAS - WHERE TO NOW?
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captainrats
QF Denial
Formal denial in SMH today.
First 15 787s to go to JetStar
QF Denial
Formal denial in SMH today.
First 15 787s to go to JetStar
Last edited by Stalins ugly Brother; 25th May 2012 at 19:09.
Sign 'O' the times
In the same breath where Q indicates falling profits.....
QANTAS Airways expects a fall of up to 91 per cent in its full year underlying profit due to the troubled European economy and soaring fuel costs.
Qantas today said it expected its underlying profit before tax in the year to June 30 to be in the range of $50 million to $100 million.
That would be down from an underlying profit before tax of $552 million in the previous financial year.
"The forecast result reflects the recent deterioration in global aviation operating conditions driven by the European economic crisis, the group's highest ever jet fuel bill, and substantial capacity increases in the domestic market that have reduced yields," Qantas said in a statement.
Virgin announces increased ties with E....
ETIHAD Airways has a bought small stake in Virgin Australia.
THE United Arab Emirates-based airline has acquired a 3.96 per cent holding in Virgin Australia through purchases made on the Australian sharemarket in recent weeks, it said in a statement today.
The strategic holding will strengthen the commercial benefits of an alliance struck between the two airlines in 2010, Etihad said.
One Co all doom and gloom(we'll all be rooned), whereas the other appears so attractive that other Co's want a piece of the action.
With A.Joyce at the helm of Q, VA can't help but appear profitable!
QANTAS Airways expects a fall of up to 91 per cent in its full year underlying profit due to the troubled European economy and soaring fuel costs.
Qantas today said it expected its underlying profit before tax in the year to June 30 to be in the range of $50 million to $100 million.
That would be down from an underlying profit before tax of $552 million in the previous financial year.
"The forecast result reflects the recent deterioration in global aviation operating conditions driven by the European economic crisis, the group's highest ever jet fuel bill, and substantial capacity increases in the domestic market that have reduced yields," Qantas said in a statement.
Virgin announces increased ties with E....
ETIHAD Airways has a bought small stake in Virgin Australia.
THE United Arab Emirates-based airline has acquired a 3.96 per cent holding in Virgin Australia through purchases made on the Australian sharemarket in recent weeks, it said in a statement today.
The strategic holding will strengthen the commercial benefits of an alliance struck between the two airlines in 2010, Etihad said.
One Co all doom and gloom(we'll all be rooned), whereas the other appears so attractive that other Co's want a piece of the action.
With A.Joyce at the helm of Q, VA can't help but appear profitable!
Outlook
“Virgin Australia has delivered a strong underlying result for the first half of the year. We expect an
improvement in underlying performance for the full year in comparison with Financial Year 2011.
“The consistent yield improvement we have seen year-to-date, has continued into January. However we are
unable to provide specific guidance at this stage, due to the uncertain economic environment”, Mr Borghetti
said.
“Virgin Australia has delivered a strong underlying result for the first half of the year. We expect an
improvement in underlying performance for the full year in comparison with Financial Year 2011.
“The consistent yield improvement we have seen year-to-date, has continued into January. However we are
unable to provide specific guidance at this stage, due to the uncertain economic environment”, Mr Borghetti
said.
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Qantas nosedives on profit warning
Qantas nosedives on profit warning
Qantas Airways expects a fall of up to 91 per cent in its full year underlying profit due to the troubled European economy and soaring fuel costs.
The airlines shares plunged 19 cents, or 12.3 per cent, to $1.23 in early trade.
Qantas on Tuesday said it expected its underlying profit before tax in the year to June 30 to be in the range of $50 million to $100 million.
Advertisement: Story continues below
That would be down from an underlying profit before tax of $552 million in the previous financial year.
"The forecast result reflects the recent deterioration in global aviation operating conditions driven by the European economic crisis, the group's highest ever jet fuel bill, and substantial capacity increases in the domestic market that have reduced yields," Qantas said in a statement.
Qantas expects a fall of up to 91 per cent in its full year underlying profit due to the troubled European economy and soaring fuel costs.
Qantas said today it expects its underlying profit before tax to be between 50 million dollars and 100 million dollars for the year to June 30. Last financial year the airline posted an underlying profit before tax of 552 million dollars.
Qantas says the result reflects a deterioration in global aviation conditions driven by the European economic crisis, the group’s highest ever jet fuel bill, and lower yields in the domestic market.
The international arm of the business is expected to post a loss of more than $450 million in the year to June 30, more than double the loss of $216 million it posted in the 2010/11 financial year.
The structural issues in that business had been compounded by rising fuel costs, the high Australian dollar and weak markets in the United kingdom and Europe, Qantas said.
There will also be a one-off cost of $100 million associated with industrial action. The airline’s domestic operations are forecast to deliver earnings of more than $600 million, up from $552 million in the previous financial year.
Qantas’ net profit for the year to June 30 will be impacted by its restructuring program, which is forecast to bring with it costs of $370 million to $380 million in the 2011/12 financial year.
Those costs would be outweighed in the long term by its financial benefits, chief executive Alan Joyce said.
‘‘We remain focused on returning Qantas International to profitability in 2014 and for Qantas International and Domestic combined to exceed their cost of capital on a sustainable basis within five years of August 2011,’’ he said in a statement
Read more: Qantas nosedives on profit warning
Qantas Airways expects a fall of up to 91 per cent in its full year underlying profit due to the troubled European economy and soaring fuel costs.
The airlines shares plunged 19 cents, or 12.3 per cent, to $1.23 in early trade.
Qantas on Tuesday said it expected its underlying profit before tax in the year to June 30 to be in the range of $50 million to $100 million.
Advertisement: Story continues below
That would be down from an underlying profit before tax of $552 million in the previous financial year.
"The forecast result reflects the recent deterioration in global aviation operating conditions driven by the European economic crisis, the group's highest ever jet fuel bill, and substantial capacity increases in the domestic market that have reduced yields," Qantas said in a statement.
Qantas expects a fall of up to 91 per cent in its full year underlying profit due to the troubled European economy and soaring fuel costs.
Qantas said today it expects its underlying profit before tax to be between 50 million dollars and 100 million dollars for the year to June 30. Last financial year the airline posted an underlying profit before tax of 552 million dollars.
Qantas says the result reflects a deterioration in global aviation conditions driven by the European economic crisis, the group’s highest ever jet fuel bill, and lower yields in the domestic market.
The international arm of the business is expected to post a loss of more than $450 million in the year to June 30, more than double the loss of $216 million it posted in the 2010/11 financial year.
The structural issues in that business had been compounded by rising fuel costs, the high Australian dollar and weak markets in the United kingdom and Europe, Qantas said.
There will also be a one-off cost of $100 million associated with industrial action. The airline’s domestic operations are forecast to deliver earnings of more than $600 million, up from $552 million in the previous financial year.
Qantas’ net profit for the year to June 30 will be impacted by its restructuring program, which is forecast to bring with it costs of $370 million to $380 million in the 2011/12 financial year.
Those costs would be outweighed in the long term by its financial benefits, chief executive Alan Joyce said.
‘‘We remain focused on returning Qantas International to profitability in 2014 and for Qantas International and Domestic combined to exceed their cost of capital on a sustainable basis within five years of August 2011,’’ he said in a statement
Read more: Qantas nosedives on profit warning
No doubt about it, Clifford & AJ have damaged Qantas, they must fall on their sword...... totally out of of their depth... wake up Australia......
VIRGIN Australia managed to outpace global airline industry growth in April to produce a solid 6.7 per cent rise in group passenger numbers. The group increase, which outstripped a 6.1 per cent rise in global passenger demand for April, was fuelled by a strong 7.9 per cent rise in domestic customers.
It compared with a Qantas group increase of 4.6 per cent, driven by growth at Jetstar and QantasLink, but a 3.1 per cent fall at Qantas domestic and 2.1 per cent fall at Qantas international.
Big rises in Virgin's capacity from both a group and domestic perspective saw revenue-load factors fall in both instances.
An 8.5 per cent rise in group capacity saw load factors down 3.6 percentage points to 77 per cent while a massive 15 per cent increase in domestic capacity cut load factors in that market by 4.1 points to 77.1 per cent.
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It compared with a Qantas group increase of 4.6 per cent, driven by growth at Jetstar and QantasLink, but a 3.1 per cent fall at Qantas domestic and 2.1 per cent fall at Qantas international.
Big rises in Virgin's capacity from both a group and domestic perspective saw revenue-load factors fall in both instances.
An 8.5 per cent rise in group capacity saw load factors down 3.6 percentage points to 77 per cent while a massive 15 per cent increase in domestic capacity cut load factors in that market by 4.1 points to 77.1 per cent.
Cookies must be enabled. | The Australian
Last edited by TIMA9X; 5th Jun 2012 at 00:42.
$1.20 and a day low of $1.16
Clifford and Joyce blaming everyone and everything except themselves.
Wonder how the big funds are liking the game plan now?
And some people wonder why frontline staff have been questioning the strategic direction for a very long time. Can't wait for the aviation expert and wirthless' spin on this one. No doubt pilots and engineers (in)actions will be right up there as the reasons for such a woeful result.
Clifford and Joyce blaming everyone and everything except themselves.
Wonder how the big funds are liking the game plan now?
And some people wonder why frontline staff have been questioning the strategic direction for a very long time. Can't wait for the aviation expert and wirthless' spin on this one. No doubt pilots and engineers (in)actions will be right up there as the reasons for such a woeful result.
Last edited by hotnhigh; 5th Jun 2012 at 01:01.
The forecast result reflects ...... substantial capacity increases in the domestic market that have reduced yields
Who will take the blame??? Only on May 24th we read
The battle for the flying dollar is set to heat up after Qantas announced plans to pour almost 900,000 extra seats across Australia
That worked well didn't it Alan
Last edited by CaptCloudbuster; 5th Jun 2012 at 00:59.
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Released to ASX today:
Qantas Airways Limited ABN 16 009 661 901
Further information and media releases can be found at the Qantas website: qantas.com
QANTAS GROUP PROFIT UPDATE
SYDNEY, 5 June 2012: The Qantas Group expects to report an underlying profit before tax (PBT) in
the range of $50-$100 million for the financial year ending 30 June 2012.
The forecast result reflects the recent deterioration in global aviation operating conditions driven by
the European economic crisis, the Group’s highest ever jet fuel bill, and substantial capacity
increases in the domestic market that have reduced yields.
Qantas International is expected to report an earnings before interest and tax (EBIT) loss of over
$450 million in 2011/12 compared with $216 million in 2010/11. The structural issues in the business
have been compounded by the impact of global economic factors – including increased fuel costs,
the high Australian dollar and weakness in the UK and Europe market – as well as the $100 million
one-off cost of industrial action.
In the domestic market, both Qantas and Jetstar will deliver improved results compared to the
previous year and combined the two flying brands will deliver an EBIT of over $600 million. This
strong result is despite industrial action, record fuel costs and aggressive competitor capacity
increases. Domestic customer satisfaction with Qantas is at its highest sustained level since 2004
and the Group continues to deliver the best network, frequency and on-time performance in the
market. Qantas remains the preferred airline for corporate travel and, through QantasLink and
Network Aviation, is capitalising on the strength of the resources industry and the fly-in fly-out market.
The resilience of the Qantas Group is underpinned by the strong and improving performances of
Qantas Domestic, Jetstar and Qantas Frequent Flyer.
As a result of the weakening revenue environment, Group yield (excluding foreign exchange) for the
second half of 2011/12 is expected to increase by 0.5% to 1.0% which is down on the previous
estimate of 1.5% to 2.5%. Also included in the 2011/12 forecast is the impact of declining bond
yields since mid-March 2012, which has had an adverse non-cash effect of approximately $50 million
on certain provisions. Group underlying fuel costs are expected to reach $4.4 billion, an increase of
approximately $700 million on the prior year.
Qantas Group CEO Alan Joyce said this tough and worsening environment reinforced the importance
of the Qantas International five-year transformation plan announced in August 2011.
“We have taken decisive action to mitigate losses in Qantas International by withdrawing from lossmaking
routes, reducing capital investment, and transforming Qantas engineering. The introduction
of a new Qantas Group structure with dedicated CEOs for Qantas International and Qantas Domestic
will bring further rigour to our business.”
“We have also doubled capacity on the successful Dallas/Fort Worth route and launched new
services to the South American gateway of Santiago. We are improving our flying economics and
lifting customer satisfaction through our Boeing 747 reconfiguration program.
“We are also attacking costs and allocating aircraft and capital efficiently. Over $300 million in annual
benefits have been identified from the changes we are making and we will continue to seek
improvements in all parts of the business.
“While there are one-off costs associated with the transformation program – in the range of $370-
$380 million for the full year 2011/12 more than half of which are non-cash items – these costs will be
outweighed by the long-term benefits of increased efficiency and competitiveness.
“We continue to practice disciplined financial management. We have announced capital expenditure
reductions totalling $900 million for 2012/13, bringing the total for the year down to $1.9 billion.
Capital expenditure in 2013/14 will be at this level or lower.
“We remain focused on returning Qantas International to profitability in 2014 and for Qantas
International and Domestic combined to exceed their cost of capital on a sustainable basis within five
years of August 2011.”
Mr Joyce said that with a cash balance of more than $3 billion, an undrawn standby facility of $300
million, 16 new unencumbered A320/B737 aircraft added to the balance sheet in the past two years
and the flexibility to reinstate or further reduce capital investment as appropriate, the Qantas Group
remains in a strong funding position.
“The Group has funding in place for the majority of its 2012/13 aircraft deliveries and intends to fund
the remainder of its future capital commitments from operating cashflow, cash reserves and available
debt,” he said.
The International Air Transport Association has downgraded its forecast for airline profits in 2012 to
$3 billion, a margin of just 0.5%, and has said that a further economic downturn could see a net loss
for the sector.
The 2011/12 profit guidance is based on current market conditions and assumes no material change
in foreign exchange rates and the long term bond rate.
Issued by Qantas Corporate Communication (Q5406)
Media Enquiries: Tom Woodward, 02 9691 4200 / [email protected]
Luke Enright, 0428 527 960 / [email protected]
Qantas Airways Limited ABN 16 009 661 901
Further information and media releases can be found at the Qantas website: qantas.com
QANTAS GROUP PROFIT UPDATE
SYDNEY, 5 June 2012: The Qantas Group expects to report an underlying profit before tax (PBT) in
the range of $50-$100 million for the financial year ending 30 June 2012.
The forecast result reflects the recent deterioration in global aviation operating conditions driven by
the European economic crisis, the Group’s highest ever jet fuel bill, and substantial capacity
increases in the domestic market that have reduced yields.
Qantas International is expected to report an earnings before interest and tax (EBIT) loss of over
$450 million in 2011/12 compared with $216 million in 2010/11. The structural issues in the business
have been compounded by the impact of global economic factors – including increased fuel costs,
the high Australian dollar and weakness in the UK and Europe market – as well as the $100 million
one-off cost of industrial action.
In the domestic market, both Qantas and Jetstar will deliver improved results compared to the
previous year and combined the two flying brands will deliver an EBIT of over $600 million. This
strong result is despite industrial action, record fuel costs and aggressive competitor capacity
increases. Domestic customer satisfaction with Qantas is at its highest sustained level since 2004
and the Group continues to deliver the best network, frequency and on-time performance in the
market. Qantas remains the preferred airline for corporate travel and, through QantasLink and
Network Aviation, is capitalising on the strength of the resources industry and the fly-in fly-out market.
The resilience of the Qantas Group is underpinned by the strong and improving performances of
Qantas Domestic, Jetstar and Qantas Frequent Flyer.
As a result of the weakening revenue environment, Group yield (excluding foreign exchange) for the
second half of 2011/12 is expected to increase by 0.5% to 1.0% which is down on the previous
estimate of 1.5% to 2.5%. Also included in the 2011/12 forecast is the impact of declining bond
yields since mid-March 2012, which has had an adverse non-cash effect of approximately $50 million
on certain provisions. Group underlying fuel costs are expected to reach $4.4 billion, an increase of
approximately $700 million on the prior year.
Qantas Group CEO Alan Joyce said this tough and worsening environment reinforced the importance
of the Qantas International five-year transformation plan announced in August 2011.
“We have taken decisive action to mitigate losses in Qantas International by withdrawing from lossmaking
routes, reducing capital investment, and transforming Qantas engineering. The introduction
of a new Qantas Group structure with dedicated CEOs for Qantas International and Qantas Domestic
will bring further rigour to our business.”
“We have also doubled capacity on the successful Dallas/Fort Worth route and launched new
services to the South American gateway of Santiago. We are improving our flying economics and
lifting customer satisfaction through our Boeing 747 reconfiguration program.
“We are also attacking costs and allocating aircraft and capital efficiently. Over $300 million in annual
benefits have been identified from the changes we are making and we will continue to seek
improvements in all parts of the business.
“While there are one-off costs associated with the transformation program – in the range of $370-
$380 million for the full year 2011/12 more than half of which are non-cash items – these costs will be
outweighed by the long-term benefits of increased efficiency and competitiveness.
“We continue to practice disciplined financial management. We have announced capital expenditure
reductions totalling $900 million for 2012/13, bringing the total for the year down to $1.9 billion.
Capital expenditure in 2013/14 will be at this level or lower.
“We remain focused on returning Qantas International to profitability in 2014 and for Qantas
International and Domestic combined to exceed their cost of capital on a sustainable basis within five
years of August 2011.”
Mr Joyce said that with a cash balance of more than $3 billion, an undrawn standby facility of $300
million, 16 new unencumbered A320/B737 aircraft added to the balance sheet in the past two years
and the flexibility to reinstate or further reduce capital investment as appropriate, the Qantas Group
remains in a strong funding position.
“The Group has funding in place for the majority of its 2012/13 aircraft deliveries and intends to fund
the remainder of its future capital commitments from operating cashflow, cash reserves and available
debt,” he said.
The International Air Transport Association has downgraded its forecast for airline profits in 2012 to
$3 billion, a margin of just 0.5%, and has said that a further economic downturn could see a net loss
for the sector.
The 2011/12 profit guidance is based on current market conditions and assumes no material change
in foreign exchange rates and the long term bond rate.
Issued by Qantas Corporate Communication (Q5406)
Media Enquiries: Tom Woodward, 02 9691 4200 / [email protected]
Luke Enright, 0428 527 960 / [email protected]
Last edited by ampclamp; 5th Jun 2012 at 01:20.
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The words chickens and roost come to mind.
The only surprise is that it took so long to eventuate, but there you go.
Hopefully some investment bankers get burnt badly for backing whatever the strategy was they were spun because they fell fo rit hook, line and sinker.
The boot is being raised and hopefully some arses are about to be shown the door before JB makes a takeover bid.
The only surprise is that it took so long to eventuate, but there you go.
Hopefully some investment bankers get burnt badly for backing whatever the strategy was they were spun because they fell fo rit hook, line and sinker.
The boot is being raised and hopefully some arses are about to be shown the door before JB makes a takeover bid.
No doubt OW and her team are busy writing positive comments on sites such as this today,
Qantas nosedives on profit warning
Good to see some asking about shareholder returns and stating that AJ should go.
Qantas nosedives on profit warning
Good to see some asking about shareholder returns and stating that AJ should go.
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Time to offer Borgetti a block of flats to come back. QF is stuffed under Joyce, and will remain so, unless they can get a new CEO. Well done Dixon and Joyce, you have got your wish.
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Having read the statements made by Joyce I find them misleading. Australia has somewhat been shielded by high oil costs due to the recent strength of the dollar. Although the dollar has fallen in the last month, the oil price has also. The only excuse could be poor hedging and lets face it, would that surprise any of us?
The second thing that I find surprising is the the Network purchase, nothing has been attributed to that business yet is almost impossible for it to have netted dollar 1.
The purchase cost was $30m, they have spend $6m per aircraft (5) which is around the going rate for the F100, but where the opposition put them into service at that cost, QF/Network spend another $4m 'upspec'ing the aircraft, total cost $50m. Now, in the future undoubtedly the additional spend will be beneficial in terms of aircraft reliability and appeal, but will the mining boom be around for them to reap that benefit?
The big fish they have landed, FMG, was allegedly 'bought' at incumbent price -15%, not much left to pass on to the mother ship after expenses. It could be argued that the real benefit was the on-carriage but were they already getting that?
The opposition on the other hand, has developed relationships, Singapore, Etihad, Air NZ and Delta and supposedly bought a stake in Skywest at a cost of $8m and gets the benefit of the on carriage and a seat at the table. A good deal for $8m.
So the question is, where has the Network $80m cost been hidden and where is the benefit to the QF shareholder?
The second thing that I find surprising is the the Network purchase, nothing has been attributed to that business yet is almost impossible for it to have netted dollar 1.
The purchase cost was $30m, they have spend $6m per aircraft (5) which is around the going rate for the F100, but where the opposition put them into service at that cost, QF/Network spend another $4m 'upspec'ing the aircraft, total cost $50m. Now, in the future undoubtedly the additional spend will be beneficial in terms of aircraft reliability and appeal, but will the mining boom be around for them to reap that benefit?
The big fish they have landed, FMG, was allegedly 'bought' at incumbent price -15%, not much left to pass on to the mother ship after expenses. It could be argued that the real benefit was the on-carriage but were they already getting that?
The opposition on the other hand, has developed relationships, Singapore, Etihad, Air NZ and Delta and supposedly bought a stake in Skywest at a cost of $8m and gets the benefit of the on carriage and a seat at the table. A good deal for $8m.
So the question is, where has the Network $80m cost been hidden and where is the benefit to the QF shareholder?
Last edited by armchair quarterback; 5th Jun 2012 at 09:18.