Qantas results 28Aug .

[moa999]

But don't think this is anything new. Qantas have always canceled/ combined flights during periods when demand was low.

No point flying two half full aircraft

 

[codash1099]

But don't think this is anything new. Qantas have always canceled/ combined flights during periods when demand was low.

No point flying two half full aircraft

Hmm. Wonder how often Emirates cancel and put pax on a QF flight.

 

[RAM]

Hmm. Wonder how often Emirates cancel and put pax on a QF flight.

Not many if the google search is anything to go by.

This came up though:

The latest government traffic statistics show weak passenger loads on flights between Australia and New Zealand. Qantas filled 61 per cent of its seats on the route in June, Emirates 56 per cent, Jetstar 72 per cent, Virgin 74 per cent and Air New Zealand 78 per cent.

Emirates flies three A380 superjumbos each day between Australia’s east coast and Auckland, each of which can seat 489 passengers. The Middle Eastern airline also flies a Boeing 777 plane once a day from Sydney to Christchurch.

Also if to be believed Emirates is paying over the odds for its A380s at USD 212.5m per plane although that may include spares:

DUBAI: Dubai’s Emirates Airline has agreed a $425 million loan from a group of banks to fund the acquisition of two Airbus superjumbos, one of the lenders said.
Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai and Dubai Islamic Bank were joint bookrunners and lead arrangers for the Sharia-compliant financing, ADIB said in a statement.


This came up as well on Qantas Aust-Dubai A380 yields less than 50% at times in Nov/Dec 2013 (so in the Annual results figures).

Cookies must be enabled. | The Australian

• December 13, 2013 12:00AM

QANTAS A380 super jumbos heading from Dubai to Australia sometimes leave half full as the flying kangaroo struggles to fill the giant planes in quiet travel periods.

Figures obtained by The Australian show some 484-seat A380s heading to Melbourne in November and early December had more than 200 of their 406 economy and premium economy seats unfilled a day before departure. In one case, more than half the business class cabin's 64 flat-bed seats were also without paying customers as were eight of its 14 high-yielding first-class seats. The figures do not include staff travel or other subsidised tickets.

Yes I know that there are last minute business/first bookings (and AFF smiling faces) but that does not make the flights break-even.

 

[RAM]

Hmm. Wonder how often Emirates cancel and put pax on a QF flight.

Emirates cancel A380 Bangkok service till late-May 10 | Airline Route
[h=4]May 20, 2010[/h][h=1]Emirates cancel A380 Bangkok service till late-May 10[/h]

Not putting on a Q flight - swapping for B777s

[h=1]Emirates cancel A380 New York service[/h]Numbers down on A380 Emirates cancels NY service All the latest travel news EMIRATES have been forced to ground two Airbus A380s from its Dubai-New York service because of poor passenger numbers.
The airline said the two double-decker Airbus A380s will be replaced with Boeing 777s amid the global economic downturn.
"Effective June 1st, two of Emirates' Airbus A380 aircraft, currently operating on one of the two daily Dubai-New York JFK services, will be redeployed to the three-times weekly Dubai-Toronto service and to one of the two daily Dubai-Bangkok services," the airline said in a statement.
The turnaround comes less than eight months after Emirates unveiled the wide-body superjumbo in the US to a fanfare reception.

"As the global economy has affected international air travel, this aircraft redeployment was based solely on a change in capacity demands in these three markets," a spokesman for the Dubai-based carrier said.
"The A380 will be replaced by Boeing's B777-300ER" on the New York service and Emirates would evaluate the A380 for it again "when economic conditions improve."

 

[pblackie]

Emirates cancel A380 Bangkok service till late-May 10 | Airline Route
May 20, 2010

Emirates cancel A380 Bangkok service till late-May 10



Not putting on a Q flight - swapping for B777s

Emirates cancel A380 New York service

Numbers down on A380 Emirates cancels NY service All the latest travel news EMIRATES have been forced to ground two Airbus A380s from its Dubai-New York service because of poor passenger numbers.
The airline said the two double-decker Airbus A380s will be replaced with Boeing 777s amid the global economic downturn.
"Effective June 1st, two of Emirates' Airbus A380 aircraft, currently operating on one of the two daily Dubai-New York JFK services, will be redeployed to the three-times weekly Dubai-Toronto service and to one of the two daily Dubai-Bangkok services," the airline said in a statement.
The turnaround comes less than eight months after Emirates unveiled the wide-body superjumbo in the US to a fanfare reception.

"As the global economy has affected international air travel, this aircraft redeployment was based solely on a change in capacity demands in these three markets," a spokesman for the Dubai-based carrier said.
"The A380 will be replaced by Boeing's B777-300ER" on the New York service and Emirates would evaluate the A380 for it again "when economic conditions improve."

Four years ago - partnership wasn't in place

 

[RAM]

Four years ago - partnership wasn't in place

Absolutely correct.

But only cancels that came up with search.

No Emirates cancels a few A380 flights due to low bookings and puts them on alternate flights.

 

[pblackie]

My mistake, misunderstood the point you were making

 

[Melburnian1]

Apologies if this has been covered on another thread (I searched but could not find) but with QF CEO Mr Joyce recently suggesting that Qantas had returned to profit, it wasn't apparent from any published reports that he was asked 'how much' by shareholders or journalists.

As with any public company, he has to be careful: there are ASX rules around disclosure.

Why didn't he choose to give the market (and the community and his staff) a bit more guidance?

Is AJ's 'profit' before or after aircraft depreciation costs, which are a big drain on airlines?

 

[moa999]

Profit, is always after depreciation costs.

Commonly reported figures are.

Sales
EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation)
EBIT (Earnings before Interest, Tax)
NPAT (or profit - Net Profit after Tax)

By profit, I think AJ means NPAT is greater than zero, which is a big turn-around from a $2.8bn loss for the past year

I think the statement was at the AGM and a forecast for the first half of the year (which is July-December for Qantas and is normally released in early February).
(reading between the lines I would say a 0-500m profit number is likely - otherwise something else would have been said)

Would expect the company to update this number to a narrower range sometime in December or January.

The QF share price has been going like a rocket (hopefully not a Virgin Galactic one) since the AGM

 

[Mr_Orange]

He must have said something that the market liked since their share price is up to $1.68!

 

[Jos888]

Apologies if this has been covered on another thread (I searched but could not find) but with QF CEO Mr Joyce recently suggesting that Qantas had returned to profit, it wasn't apparent from any published reports that he was asked 'how much' by shareholders or journalists.

As with any public company, he has to be careful: there are ASX rules around disclosure.

Why didn't he choose to give the market (and the community and his staff) a bit more guidance?

Many of us are looking forward to the following .....

From Swilk's post (#52) on 30th October Re: Invitation to PER coughtail function with Lesley Grant 29 Oct. (my bold)

".... I also spoke with Stephen Thompson, Exec Manager Global Sales about QFi. He assured me that PER-SIN would be one of the first flights re-instated when they returned to profitability and that we could expect seasonal PER-SIN flights in the future much like the PER-AUK ones."

 

[BD1959]

Many of us are looking forward to the following .....

From Swilk's post (#52) on 30th October Re: Invitation to PER coughtail function with Lesley Grant 29 Oct. (my bold)

".... I also spoke with Stephen Thompson, Exec Manager Global Sales about QFi. He assured me that PER-SIN would be one of the first flights re-instated when they returned to profitability and that we could expect seasonal PER-SIN flights in the future much like the PER-AUK ones."

As much as I'd like to see QF expand services again, something isn't right here.

QF were reported as withdrawing from PER-SIN because it was "underperforming" and was closed as a result of cost-cutting which had them in the mess going in to the AGM.

Why would they reinstate they reinstate an under-performing route just because the Group as a whole is returning to profit?

Regards,

BD

 

[RAM]

As much as I'd like to see QF expand services again, something isn't right here.

QF were reported as withdrawing from PER-SIN because it was "underperforming" and was closed as a result of cost-cutting which had them in the mess going in to the AGM.

Why would they reinstate they reinstate an under-performing route just because the Group as a whole is returning to profit?

Regards,

BD

Please do not confuse "Spin" with logic.

If a B787 can cut operating cost by 5-17% (depending on distance seat config) per seat and Q is losing 3% per seat then logic dictates the B787 is a no-brainer.

Q Mgmt on the other hand suggest more scientific analysis is required of personnel.

 

[BD1959]

Please do not confuse "Spin" with logic.

My conclusion was that this was intended spin for that particular audience; afterall: we've seen the resultant contempt for AFF questions from the previous meet'n'greet in MEL.

Was merely pointing out the apparent contradictions of QF previous comments vs the comment made on this particular occasion.

... before looking for logic, I'd be trying to identify intelligence.

Regards,

BD

 

[RAM]

My conclusion was that this was intended spin for that particular audience; afterall: we've seen the resultant contempt for AFF questions from the previous meet'n'greet in MEL.

Was merely pointing out the apparent contradictions of QF previous comments vs the comment made on this particular occasion.

... before looking for logic, I'd be trying to identify intelligence.

Regards,

BD

Gotta' love Star Trek - "No signs of intelligent life, captain", not unexpected that's Q mgmt!

 

[Awesom Andy]

If a B787 can cut operating cost by 5-17% (depending on distance seat config) per seat and Q is losing 3% per seat then logic dictates the B787 is a no-brainer.

Although somebody has to pay for the plane somehow. After incurring the capital costs, and the depreciation that goes with the capital, I'm not sure how well those few percentage points hold up.

 

[RAM]

Although somebody has to pay for the plane somehow. After incurring the capital costs, and the depreciation that goes with the capital, I'm not sure how well those few percentage points hold up.

The older the plane the more maintenance required and the longer each period out of service as well as the greater the number of unscheduled maintenance events (flight delays and cancellations). The 20+ year 747s and 767s that are now finally moving on (to the graveyards in Aust and Arizona) lose a good deal of possible flying time due to maintenance.

In the write downs on Aug 28 results announcement it looks as if Q had valued those aircraft at full price NOT what they paid for them AND had not depreciated them according to the approach used by most listed airlines (ie: you can verify the figures).

If it is profitable for JetStar to fly $199 to Japan with new aircraft then it certainly is more profitable for QI to fly the same route with the same new aircraft as QI gets the premium passenger yields. See my earlier posts on cost-shifting JQ==>QI

 

[Jos888]

As much as I'd like to see QF expand services again, something isn't right here.

QF were reported as withdrawing from PER-SIN because it was "underperforming" and was closed as a result of cost-cutting which had them in the mess going in to the AGM.

Why would they reinstate they reinstate an under-performing route just because the Group as a whole is returning to profit?

Regards,

BD

Well BD1959, I live in hope!

 

[AustraliaPoochie]

I don't think there would be guidance or dividends for quite a while yet.