QAN, QANTAS AIRWAYS LIMITED

[nipper]

Qantas has cut its international capacity by 90 per cent, up from the 23 per cent reduction announced just last week, until at least the end of May in its latest response to the Covid-19 outbreak.

The airline is also shuttering domestic services by 60 per cent across the same timespan. This means Qantas has grounded 150 aircraft, including most of its wide-body fleet.

Qantas' cut to domestic operations jumped from 5 per cent, which the carrier said: "reflects a rapid decline in forward travel demand due to government containment measures, corporate travel bans and a general pullback from everyday activities across the community".

ouch

[NPH]

BOEING SEEKS SHORT-TERM AID IN TALKS W/WHITE HOUSE, LAWMAKERS $BA

DELTA IN TALKS WITH BANKS TO BORROW UP TO $4 BILLION AMID VIRUS $DAL

[plastic]

In Reply To: blacksheep's post @ Nov 26 2019, 10:49 AM

That strategy is on steroids now.

Have to think if the airlines have insurance policies about these kind of things.

[blacksheep]

Merry Christmas

Reported to up to 400 jobs could be lost

Qantas Airways is planning to lay off hundreds of workers before Christmas, as the airline executes on its cost-cutting strategy.

...and this comes only weeks after

an analysis by superannuation investors showed Qantas chief executive Alan Joyce earned a realised pay of almost $24 million for 2017-18, including the vesting of bonus shares awarded for the airline's strong financial performance.

Some company managers are upset about being required to carry out the job cuts in the wake of the publicity about Mr Joyce's huge pay packet, a Qantas source said.

The person, who is involved in carrying out the looming job cuts, said about 400 positions would be lost across its Australian and global business.

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[nipper]

In Reply To: blacksheep's post @ Aug 22 2019, 11:41 AM

Don't understand the moaning about fuel costs. Maybe they hedged badly? Never heard of an airplane that doesn't need some giggle-juice in its engines. The fleet is more efficient now 747s are retired.

Meantime, the latest $400mill buyback means Qantas will have bought back nearly a third of its shares in the past four years.

[blacksheep]

In Reply To: blacksheep's post @ Feb 22 2019, 12:34 PM

Fuel costs once again impact FY19 results. SP up 3.63% @ $5.99/share - no doubt in part on back of further buybacks announced today

FY19 Key Group Financial Metrics
Underlying PBT1 ($M) 1,302 1,565 (17) Impacted by higher fuel, low AUD and other cost increases
Underlying Earnings per Share2 © 56.2 63.0 (11) Share buy-back helped to offset decrease in earnings
Statutory Profit Before Tax ($M) 1,265 1,352 (6.4) Gains on asset sales partially offset cost increases
Statutory Earnings per Share © 54.6 54.4 0.4 On-market share buy-back offset lower earnings
Rolling 12 month ROIC3 (%) 18.4 21.4 (3)pts Continued strong Group ROIC
Revenue ($M) 17,966 17,128 4.9
Operating cash flow ($M) 2,807 3,413 (18)
Net debt4 ($B) 4.7 4.9 4.1 Low net debt provides financial flexibility
Unit Revenue5 (RASK) 8.85 8.40 5.3
Total unit cost6 (c/ASK) 7.99 7.37 (8.4) Total unit cost impacted by higher AUD fuel prices
Ex-fuel unit cost7 (c/ASK) 5.40 5.37 (0.6)
Available Seat Kilometres8 (ASK) (M) 151,430 152,428 (0.7)
Revenue Passenger Kilometres9 (RPK) (M) 127,492 126,814 0.5

Key features of the Buy-Back
Target size Up to 79.7 million Shares (approximately 5.1 per cent of Qantas’ shares on issue)*.
However, Qantas reserves the right to vary the size of the Buy-Back or not buy
back any Shares.
Buy-Back Price Market Price x (1 – Final Discount).
The Buy-Back Price will be announced by Qantas on the Buy-Back Date, Monday,
4 November 2019.
Market Price The VWAP of Qantas ordinary shares sold over the five trading days up to and
including the Closing Date, calculated to four decimal places, as determined
by Qantas. The Market Price will be determined by Qantas as soon as practicable
after the ASX closes on the Closing Date.
Buy-Back Discount (Tender range) The Buy-Back Discount is the discount to the Market Price, at which Eligible
Shareholders may Tender Shares to Qantas during the Tender Period, within the
range of 10 per cent to 14 per cent (inclusive) at one per cent intervals. The maximum
discount allowed by the ATO is 14 per cent.
You may also select, from the options shown on the Tender Form, a Minimum Price
at which you are prepared to sell your shares, or a Final Price Tender, which is an offer
to sell your Shares at the Buy-Back Price determined by Qantas in accordance with
Section 1.1 of this Booklet.
Final Discount The Final Discount will be the discount level determined by Qantas, within the range
of 10 per cent to 14 per cent (inclusive) at one per cent intervals, which enables
Qantas to buy back the number of Shares that it determines to buy back (if any).
Tender Minimum If you hold more than 100 Shares, you must Tender a minimum of 100 Shares
in aggregate. You may tender different parcels of your Shares at different
Buy-Back Discounts.
If you hold 100 Shares or less you must Tender all of your Shares to participate
in the Buy-Back.
Capital Component of Buy-Back Price The ATO has indicated that the Capital Component will be $1.19.
For Australian tax purposes, the sale proceeds of the Shares for entities other than
companies will generally be taken to be the $1.19 Capital Component plus the amount
(if any) by which the CGT Value exceeds the Buy-Back Price.
Qantas expects this to be confirmed in the Class Ruling.
Dividend Component of Buy-Back Price The Buy-Back Price less the Capital Component, for Australian tax purposes only.
*For illustrative purposes, assuming a Buy-Back Price of $4.97 (being a 14 per cent discount to an assumed Market Price of $5.78),
the total spend by Qantas would be $396 million

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[nipper]

Second most lucrative air route in the World.....
....... SYD-MEL ... For QF; according to this article
http://www.traveller.com.au/cash-cows-the-...e-routes-h1h9fa

[balance]

In Reply To: blacksheep's post @ Feb 22 2019, 12:34 PM

That's not a bad write up on QAN. One factor not covered is the cost of replacing an aging fleet. Their 737s are up to 17 years old as are the earlier 330s. The 747s are going slowly and 380s have been cancelled. There is no direct replacement for the 380 or 747.

Joyce afaik has not ordered a single aircraft for Qantas mainline since he took over. The current 787s were ordered by his predecessor and Joyce sent those fuel efficient 787s to jetstar and then complains that Qantas international is in terminal decline.
Orders for new jets ie Airbus 321NEO, 737 max, 777X and or the Airbus 350 variants need to come soon. With him sensibly bailing out of the remaining 380 orders they may have to buy another airbus product as a penalty, so possibly the 350s.

So in short I think they will face quite a capex bill for years to come with fuel prices creeping up.

[blacksheep]

Qantas Better Watch the Bloat as Fuel Costs Rise
The carrier seeks to ramp up ultra-long-haul flights. That might not help the bottom line.

By David Fickling
February 22, 2019, 6:00 AM GMT+11

Fuel costs rose A$416 million ($296 million) in the first half, driving the carrier's key measure of underlying profit before tax to its biggest decline in four-and-a-half years, according to results announced Tuesday. The pain was particularly concentrated on longer overseas routes, which accounted for just over half of the increased kerosene spending.

read more - https://www.bloomberg.com/opinion/articles/...-haul-ambitions?
Total short positions as at 21 Feb 2019 = 0.31%
Shorts reported yesterday - not yet included

Thu 21st Feb, 2019 4,590,382 1,625,648,997 0.28% 19,152,469 23.97%

https://www.shortman.com.au/stock?q=qan

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[balance]

In Reply To: blacksheep's post @ Feb 8 2019, 02:54 PM

Passengers love them but they are a maintenance hog and the early ones at least could not perform as they were supposed to. I think QAN were waiting for production to die before officially cancelling. This may signal they are thinking about other Airbus products given they have backed out of contracts.
The "Project Sunrise" springs to mind with the A350 in line for Sydney-NYC or Sydney-London non stop. Can't do it yet, but both Boeing and Airbus are working on it.