AIR-Air New Zealand Limited

[winner (n)]

Another Air NZ sale to North America. Forward bookings for longhaul must really be struggling now.

[Basil]

Qantas doubling down on AIR's premier New York route.
https://www.nzherald.co.nz/business/doubling-down-qantas-to-go-daily-on-auckland-new-york-route-in-battle-with-air-nz/2MZA7TADQJEXTPRNYVVQTIXNXA/
My thoughts.  Cam Wallace working for Qantas is a huge blow to AIR.  Whatever result they print later this month, its all about the forward outlook and I think the increase in fuel costs, revenge spending on travel tailing off, weak economy and ever-increasing competition on international routes paints a very sober picture of future profitability.  In addition, from a competitive point of view I think much of AIR's internal fit out on wide body aircraft is very tired and dated.

[777]

Both Delta and American Airlines are about to start operating over our summer along with an increase in United services. Simply competition.

[Onemootpoint]

Qantas doubling down on AIR's premier New York route.
https://www.nzherald.co.nz/business/doubling-down-qantas-to-go-daily-on-auckland-new-york-route-in-battle-with-air-nz/2MZA7TADQJEXTPRNYVVQTIXNXA/
My thoughts.  Cam Wallace working for Qantas is a huge blow to AIR.  Whatever result they print later this month, its all about the forward outlook and I think the increase in fuel costs, revenge spending on travel tailing off, weak economy and ever-increasing competition on international routes paints a very sober picture of future profitability.  In addition, from a competitive point of view I think much of AIR's internal fit out on wide body aircraft is very tired and dated.

Yes, I read this today. This article really emphasises how asleep AIR was at the wheel in their prep towards a post Covid plan. I try to be as loyal as I can but the fact is other airlines provide a better plane, fitout, prices than AIR at the moment.

[Waltzing]

Well they are going to  pay a special DIV ...

Yup and they need some new planes... still probably fly emirates instead though...

[Onemootpoint]

That special div was surprising I think. Good for holders.
Well, they are in the process of buying/ upgrading, etc. but just slow off the mark. The others seem to have what NZ customers want. Having said that, it doesn't seem as if AIR are struggling to attract.

[kiwi2007]

MorningStar:

We expect the return of industrywide capacity to lead to a normalisation in profitability and forecast underlying pretax profit to moderate by about 28% in fiscal 2024 to NZD 423 million.

EPS 9 (24) and 9.5 (25) with a 50% dividend.

Valuation 97p

Being MorningStar I'd take this with a pinch of salt

[Onemootpoint]

There is probably no specific reason for AIR not to reach a bit higher as many of its peers are doing. They were just a bit slow in their planning, and lacked the apparent 'foresight' some of their peers had. Even Emirates unexpectedly and suddenly called back many A380's back into service like AIR with their ageing B777's. But they do have plans, planes and retrofits coming up albeit the planes seems to replace existing ones only.

But airline stocks can be fickle creatures and many an investor would say stay away.

[Onemootpoint]

We're not the only ones to criticise a national airline.

Seems the Aussies have some issues too; with theirs:

Qantas and Australia's skies clouded by soaring airfares, anti-competitive behaviour, and nepotism

https://www.livewiremarkets.com/wires/qantas-and-australia-s-skies-clouded-by-soaring-airfares-anti-competitive-behaviour-and-nepotism


"Once a source of national pride, Qantas, the national carrier, has evolved into an emblem of profit-driven opportunism, leaving millions of Australians to bear the brunt of exorbitant fares and diminished customer service.

Amidst this disheartening scenario, the questionable ties between Qantas' Chief Executive Officer and senior Government figures further highlight the alarming extent to which vested interests have taken precedence over the well-being of the nation's people."

[Onemootpoint]

We're not the only ones to criticise a national airline.

Seems the Aussies have some issues too; with theirs:

Qantas and Australia's skies clouded by soaring airfares, anti-competitive behaviour, and nepotism

https://www.livewiremarkets.com/wires/qantas-and-australia-s-skies-clouded-by-soaring-airfares-anti-competitive-behaviour-and-nepotism


"Once a source of national pride, Qantas, the national carrier, has evolved into an emblem of profit-driven opportunism, leaving millions of Australians to bear the brunt of exorbitant fares and diminished customer service.

Amidst this disheartening scenario, the questionable ties between Qantas' Chief Executive Officer and senior Government figures further highlight the alarming extent to which vested interests have taken precedence over the well-being of the nation's people."

Well well. So Alan Joyce decided he had to go 2 months before his planned exit. Must have been real bad not being to hang on another 2 months.

[Waltzing]

Yes but that DIV AIR is paying is a monster in an inflationary world...

AIR should reach 90 ish if they can keep pumping the public...

A NAT/ACT govt might sell it down also...

[Sideshow Bob]

Bet you Grant can't wait to get his hands on their share of the dividend.

That $103m will really shore up govt spending.....

[winner (n)]

Bet you Grant can't wait to get his hands on their share of the dividend.

That $103m will really shore up govt spending.....

He would have better off getting a few hundred million in debt repayment before allowing them to splurge out on divies .....to retail investors in the main who in essence are being subsidised by the taxpayer

[Waltzing]

Just shows how the system is not ready for the increase in travel demand and imagine if there was not Costs of living crisis and high petrol prices...

https://www.nzherald.co.nz/nz/auckland-airport-delays-warning-as-15000-travellers-expected-first-day-of-school-holidays/ECPPLEG2BBDU7CGYNK7ETS6GXY/

[777]

Should be on a AIA thread.Customs and immigration problem.