QF Preliminary Results FY17/18

[RooFlyer]

AJ really has little to do with the numbers out of QF.

When fuel was going through the roof the share price tanked and people were demanding his head. Fuel charges eventually dropped hard and Lo and behold the share price is up and he is incredible!

The only thing he is consistent with is screwing the operational staff and keeping fuel surcharges active.

Fuel charges were just incorporated into the base fare, with a few exceptions IIRC.

They should be giving us shares, instead of doing a buyback.
Yes, with a buyback we do get $, but in the end, our share holding in this "Australian" is slowly going down.
I had 165 shares, with QF bought when they were about $5 each or so, now I have 155, with this upcoming buyback, it might go down to 130, soon, down to zero!
Pity.

Only if you accept the buyback. If you hold on, the yield should increase, as there are fewer shares to spread the dividend around.

 

[rock86]

They should be giving us shares, instead of doing a buyback.
Yes, with a buyback we do get $, but in the end, our share holding in this "Australian" is slowly going down.
I had 165 shares, with QF bought when they were about $5 each or so, now I have 155, with this upcoming buyback, it might go down to 130, soon, down to zero!
Pity.

There is absolutely no reason at this point in time for Qantas to be issuing additional shares. They do not need capital, so why would you want to further dilute your share base.

A combination of a dividend and buyback with their current strong capital position, which looks set to continue for at least the next FY regardless really of what oil does, is pretty standard practice for a company in this position.

Funny reading through some news comments lamenting that they only paid $4 million in tax. I may not be the best person to judge considering my profession, but it does amaze me how many people have little clue regarding how our taxation system actually works.

 

[rock86]

So, for something that is supposed to be a reward for work already done, it's hard to see why people who leave before the next EBA is signed (which could be years away), are excluded.

As far as I can tell, the vast majority of operational staff are currently excluded. All pilots, engineers, and cabin crew. I guess the concept of happy employees being good for the business is something that wasn't part of their IR training. You can bet it will be on peoples' minds when asked to do that bit extra!

A number of companies structure their short term bonus schemes where a payment may be made upfront and then some deferred to be awarded in the future, or they can be split over a number of periods, all depending on you continuing your employment at the organisation. But then their are others where the bonus is paid immediately upon results released. All companies are different, but this is generally in respect to executive and senior management remuneration - if operational staff receive a bonus it is usually paid in the one lump sum.

This looks like a pretty conniving way for Qantas to push their new EBA through, and IMO is not a good look for the company.

 

[JohnK]

How much impact has the ever increasing domestic airfares had to the bottom line? SYD-BNE is $184 in a few weeks with some flights $190. Won't be long before we see $200+ for a very restrictive airfare.

I don't understand how they're maintaining high yields with these airfares.

 

[jb747]

This looks like a pretty conniving way for Qantas to push their new EBA through, and IMO is not a good look for the company.

Obviously I'm not any form of IR person....but I don't actually understand how what amounts to 'Indian giving' will help push anything through.

 

[juddles]

I do not own shares in Qantas. My biggest investment with them was attaining LTG.

I have always known that the "Life Time" in "Life Time Gold" is either mine or theirs, whichever ends sooner.

So just on that point, a healthy financial status for QF is something I am not unhappy about.

 

[rock86]

How much impact has the ever increasing domestic airfares had to the bottom line? SYD-BNE is $184 in a few weeks with some flights $190. Won't be long before we see $200+ for a very restrictive airfare.

Obviously I'm not any form of IR person....but I don't actually understand how what amounts to 'Indian giving' will help push anything through.

Completely agree.

 

[juddles]

How much impact has the ever increasing domestic airfares had to the bottom line? SYD-BNE is $184 in a few weeks with some flights $190. Won't be long before we see $200+ for a very restrictive airfare.

I don't understand how they're maintaining high yields with these airfares.

The "ever increasing airfares" ????

Jesus JohnK, you must be young. Air travel is getting almost ridiculously cheap.

I just checked what "the bus" costs (Greyhound) fro next week - cheapest is $109, flexi is $198. And you want to argue airfares are expensive??

 

[RooFlyer]

Ha ha. A few years ago, I bought the daughter of good friends of mine a return ticket to HKG as an 18th birthday present (she met us there as we were returning from Europe). It was sensationally cheap at about $900 on Qantas.

These days its common to see return airfares to HKG for $600 or less on Qantas.

(The best part was seeing her in the Champagne Bar at the Wing First lounge, choosing which Champagne to try next. )

 

[JohnK]

The "ever increasing airfares" ????

Jesus JohnK, you must be young. Air travel is getting almost ridiculously cheap.

It wasn't that long ago that the $184 airfare of today was $99.

It won't be long before I can start planning airfares in advance and rely on double SC offers and JQ specials.

 

[serfty]

I don't understand how they're maintaining high yields with these airfares.

Huh!? "Yield" is revenue related being closely tied with the total $$$ an airline gets for a flight; generally the higher the prices, the higher the revenue and the higher the "yield".

Certainly air fares are overall cheap these days when compared to those of "yesteryear".

I flew on a cheap MEL-SYD r/t fare in the 80's (Super Apex, 21 day advance+Sat. Night) for $208. Back then $208 would have purchased 15 or so 'slabs of beer' or 100 "Bic Macs".

These days, 15 slabs of beer will set one back about $650 and the maccas, $600.

You will see the fares cheapest where the competition is highest.

My first face to face meeting with AFF'ers was in November 2004 in the SYD QP - I was flying Qantas, MEL-SYD on a $58 fare and SYD-BNE on a $55 fare. This was before the advent of Jeststar and QF were dealing with the influx of LCC.

Today I can buy MEL-SIN r/t on QF for the same price as 100 Big Mac's.

 

[sudoer]

Today I can buy MEL-SIN r/t on QF for the same price as 100 Big Mac's.

If not less! have you seen the price of McDonalds these days?!

 

[Quickstatus]

They should be giving us shares, instead of doing a buyback.
Yes, with a buyback we do get $, but in the end, our share holding in this "Australian" is slowly going down.
I had 165 shares, with QF bought when they were about $5 each or so, now I have 155, with this upcoming buyback, it might go down to 130, soon, down to zero!
Pity.

You don’t have to accept the buyback

.....
QF prices have gone up compared to 1 yr and 2 yrs ago by more than inflation .
Last night I purchased an MH/JL J class between KUL and NRT for circa AUD$1300 return. (7hr flight). Less than a QF J SYD-MEL return

 

[JohnK]

Certainly air fares are overall cheap these days when compared to those of "yesteryear".

Not when comparing domestic airfares to 10 years ago and certainly not when compared to 7 years ago.

Today I can buy MEL-SIN r/t on QF for the same price as 100 Big Mac's.

I guess everything is relative. I can purchase a return to BKK/HKG/SIN cheaper than 2 returns SYD-BNE.

And relative to inflation this latest increase is $7 on a $177 airfare. How much is inflation these days? 1.5%? And how many more increases until next financial year?

 

[fiscal]

Perhaps put a few more FF call centre staff on. Last week I waited 70mins and got through to cancel a booking and book a new one, only to be told I had to ring Indonesia. Rang them and got through in 2 minutes. Told, "sorry" I had to do a change of award booking through the Australian call centre. Ring again, "sorry call wait times now exceed 90 mins - leave your number and we will never ring you back". So, 90 mins later I rang again, and 75mins later I got someone (who actually stuffed the cancellation and rebooking up - found out the next day). The next day, again the 90mins message, and no call back, so rang again and 70 mins later got someone who fixed it all.

Is 70mins a satisfactory wait time? and the call back feature where they never ring back, is that satisfactory?

 

[PineappleSkip]

Not that long ago I got BNE-SYD FOR $135 each way. It was the cheapest I’d seen in a long time.

Cheers skip

 

[JohnK]

Not that long ago I got BNE-SYD FOR $135 each way. It was the cheapest I’d seen in a long time.

Not that long ago I was getting SYD-BNE for $65. And in more recent times I could get BNE-SYD return for $190.

I could be wrong but think the discounted airfare is now $135 one way.

 

[moa999]

Oil price and AUD has moved a but but since those days.

 

[davidj]

Now they're making so much profit one might be able to find more J award seats to from international ports

More profit could indicate more business (ie. revenue seats being sold), therefore less freebies going around.

So no.

 

[trippin_the_rift]

Not that long ago I was getting SYD-BNE for $65. And in more recent times I could get BNE-SYD return for $190.

I could be wrong but think the discounted airfare is now $135 one way.

$65 is excellent. I can't even get that rate no matter how hard and wide I search...on all sorts of crazy underground and password protected booking engines. Heck, sub $200 return is good.