Qantas Shares Take a Plunge

[Foreigner]

Forecast of soft demand has airline cutting back domestic flights. Shares take a hit of close to 10% today:

Markets Live: Energy stocks caned

 

[marki]

Noticed good time to buy?

 

[AustraliaPoochie]

OR to accept any offers for them to buy you out, if they do that again.
I had 165 bought it when the price was about $5 a long time ago, but that balance got reduced last time they had a quasi buy back, last year.
No real profit dividend, I will wait and see what happens, 5% of me wants to sell, 95% of me wants to keep, but will wait and see.
Will keep flying QF more than VA though.

 

[Buzzard]

Noticed good time to buy?

There are better options in the share market ATM. YMMV.

 

[marki]

There are better options in the share market ATM. YMMV.

I am sure there are better choices ........It would be nice to get CL membership for 50000 shares ( being a part owner) I chose a random number.

 

[yohy?!]

may be that people in the know are bailing out recognising that all the talk of good times has been down to good luck with the low oil price and the accounting sleight of hand in the year of the loss.

fundamentals of the business are still very dependent on cash from forward bookings which are very susceptible to drops in demand in both domestic and international markets - a financial crisis causing a drop in both would cause their reserves and lines of credit to be exhausted pretty quickly. a rising AUD would only magnify the pain and test whether or not the turnaround has sufficiently diversified the business or merely cut costs to the bone for short term bumps in the share price.

 

[marki]

I am sure there are better choices ........It would be nice to get CL membership for 50000 shares ( being a part owner) I chose a random number.

Those people would be good share holders interested in the company not wanting to sell and good customers

Hey I replied to myself ....

 

[Benno]

So they're cutting international capacity, I wonder how long before they start cutting domestic capacity?

 

[TheInsider]

So they're cutting international capacity, I wonder how long before they start cutting domestic capacity?

Overall they aren't cutting capacity. as for international, they are moving aircraft around, which was planned months ago anyway.

Qantas said it would grow domestic capacity by between 0.5 and 1 per cent during that period, instead of about 2 per cent as originally planned - a year-on-year drop - and that it could reduce it even more

 

[UP4014]

Noticed good time to buy?

I think buying airline stock is the slow way to loose money. Maybe a few for the fun factor but that would be about it.

Matt

 

[Benno]

Overall they aren't cutting capacity. as for international, they are moving aircraft around, which was planned months ago anyway.

What I meant was they're cutting the forecast domestic growth rate. Being based in Perth, I'm fairly sensitive to any potential reductions to/from here, which will probably happen as the post mining boom recession hits this state hard. Melb-Syd will still be growing, which may explain the lower overall growth rate.

 

[Pele]

Gday

The amount of bullsh*t companies can get away with in ASX announcements these days never ceases to amaze me. One of the things QANTAS mentioned was the uncertainty around the federal election. What rubbish. Never once have i heard anyone cancel or put off their holiday because they were worried about an election.

Pele.

 

[russ]

It's plausible that business travel might reduce though

 

[Pleb Status]

QAN is down almost 15% over the past two days. Interesting to see how it goes today as it looks like an up day overall for the market.

It would appear that some 'people' may know more than the general market, as the reaction to the official announcement appears to be a bit harsh.

 

[ComeFlyWithMe]

You know the joke...
How do you make a million dollars in the airline business?
Start with 2 million.

 

[JohnK]

Soft demand? Airfares too high and fuel surcharges on award tickets too high.

Is it just my imagination or are there less sales the past 12 months and lots of blackout periods? I know they were in trouble but high airfares is not the long term solution to getting out of trouble.

 

[Altair]

Gday

The amount of bullsh*t companies can get away with in ASX announcements these days never ceases to amaze me. One of the things QANTAS mentioned was the uncertainty around the federal election. What rubbish. Never once have i heard anyone cancel or put off their holiday because they were worried about an election.

Pele.

As QF is not just an airline catering for holiday travellers your comment could be quite correct.
However from experience if an election is coming travel for some public servants does decline and QF does have a lot of travel contracts with Commonwealth Ministries/Departments/Agencies so their comment can be just as valid.

 

[whatmeworry]

Rumours that a Chinese Airline will buy a stake in Qantas.

Qantas may be target for Chinese airlines, Credit Suisse says

 

[Mr_Orange]

Noticed good time to buy?

Airlines are generally never a good investment.

 

[marki]

Airlines are generally never a good investment.

Truer words were never spoken