Is Qantas Feeling the Pinch?

[RooFlyer]

Things might be looking up:

Qantas growing international market share as competition falls away

NoCookies | The Australian

www.theaustralian.com.au

A reduction in capacity by foreign airlines flying to Australia has delivered Qantas a sizeable boost in market share.
The latest international airline activity report by the Bureau of Infrastructure, Transport and Regional Economics revealed Qantas carried 18.2 per cent of all travellers in and out of the country in March, up from 16.9 per cent the same time last year.

The figure represented the largest market share recorded by Qantas since May 2012, when Jetstar’s share was 7.9 per cent, and Virgin Australia had 8.9 per cent of international passengers.

In March, Jetstar held 9 per cent of the market, and Virgin Australia 6.7 per cent.

Qantas’s powerhouse performance follows the launch of non-stop Perth-London services last year, and the airlines’ gradual replacement of Boeing 747s with new 787-9 Dreamliners.

Speaking on the sidelines of the International Air Transport Association annual general meeting in Seoul last week, Qantas Group CEO Alan Joyce flagged the improving international business.

“What’s helping us in particular, because of high fuel prices for the first time in 14-years capacity into Australia is in negative growth, which is a big decline,” Mr Joyce said.

“We’re seeing a significant improvement in the performance of our international business and there will be a significant improvement in the second half.”

 

[CaptJCool]

Things might be looking up:

Qantas growing international market share as competition falls away

NoCookies | The Australian

www.theaustralian.com.au

“And there will be a significant improvement in the second half”

Well that quote hardly suggests “feeling the pinch”

 

[jpp42]

That may be true, but wouldn't any bookings (cashflow) still be real for the company? A detrimental effect of lower bookings entering the new fiscal year is a problem to be tackled afterwards. Like any business.

I don't know much about airline accounting - when they sell tickets the money is obviously collected and improves cash flow. However, when is the revenue from this ticket sale booked? Normally you can't book the revenue until you actually deliver the product or service, so it seems to me it would only be booked on the date(s) of the flights? In that case, I don't see how promotions that encourage forward booking should really affect revenue and therefore be all that advantageous to the company's performance. Certainly there will be benefits in demand planning, and overall revenue management as they will know earlier which flights are popular. But I can't see how the forward bookings directly affect company performance except for cash flow which should really only be a minor issue for a large company like Qantas.

 

[CaptJCool]

Unearned revenue / forward sales are brought to Account on the date it’s earned not the date it’s received Different approaches to airline revenue accounting

KIND OF OPERATES THEN LIKE NURSING HOME ACCOMMODATION BONDS
Financial supplies and so no GST Until the deferred revenue is brought to account when the person departs, (usually the pearly Gates..) but for QF purposes at Gate 0) haha.

Qantas takes a financial flight of fancy on accounting winds

There are many ways to skin a cat, but there are many more ways to present a profit result.

www.smh.com.au

 

[pauly7]

Things might be looking up:

Qantas growing international market share as competition falls away

NoCookies | The Australian

www.theaustralian.com.au

According to the BITRE numbers it appears that the Singapore hub reinstatement is working well.

 

[Happy Trails]

Things might be looking up:

Qantas growing international market share as competition falls away

NoCookies | The Australian

www.theaustralian.com.au

SYD-BKK would be (or should be) a case in point, where capacity has been reduced by around 50% in the past couple of years, with TG and EK cutting services.

 

[pauly7]

Let’s be honest they got a bit of a free kick from ‘helping’ EK out of trans tasman routes and up gauging to fill the gap.

787 new routes would be dragging in some cash and pax too I expect.

 

[pauly7]

SYD-BKK would be (or should be) a case in point, where capacity has been reduced by around 50% in the past couple of years, with TG and EK cutting services.

I don’t quite get why Thailand is so ‘on the nose’ at the moment.

Having said that, seeing ALOT of Bangkok Airways code plastered all over QF flights at the moment....

 

[amaroo]

Let’s be honest they got a bit of a free kick from ‘helping’ EK out of trans tasman routes and up gauging to fill the gap.

787 new routes would be dragging in some cash and pax too I expect.

Smart spending, and plain fluke with the timing.

 

[Quickstatus]

BITRE March 2019 also reports that QF has increased its international market share from 16.9 to 18.2%. The QF group commands a 27.4% of the international market.

This is on a background of declining international travel particularly into Australia with several international airlines reducing seats by using smaller aircraft and removing certain flights

Edit @RooFlyer was on to this when I was still sleeping