AIR-Air New Zealand Limited

[Minimoke]

Oh dear. No food for koru business class. Supplier can't find labour.

[Crackity]

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Jarden lifted its rating and 12-month target price on Air New Zealand and expects it to announce a full-year dividend in August, its first since pre-covid.It now rated the stock at overweight versus a prior view of neutral and the target price has been lifted by 18% to xxxxxx


Last bit was 90 cps - there youse go 

[Minimoke]

From BusinessDesk - you want more you should subscribe.....

Jarden lifted its rating and 12-month target price on Air New Zealand and expects it to announce a full-year dividend in August, its first since pre-covid.It now rated the stock at overweight versus a prior view of neutral and the target price has been lifted by 18% to xxxxxx


Last bit was 90 cps - there youse go 

They werent due to pay a dividend for a few more years yet. Must be really scalping passengers.

[Teitei]

They werent due to pay a dividend for a few more years yet. Must be really scalping passengers.

All airlines are reaping windfall profits from pent up travel demand and passengers are willingly shelling out $$$ to get their travel fix after 3 years of lockdown.

Air NZ sp recovery lags that of Qantas and SIA for eg so plenty of upside yet to go.

[Minimoke]

All airlines are reaping windfall profits from pent up travel demand and passengers are willingly shelling out $$$ to get their travel fix after 3 years of lockdown.

Air NZ sp recovery lags that of Qantas and SIA for eg so plenty of upside yet to go.

Its election year with a govt majority owned airline with tax payers bailing it out again in the latest cap raise.  Accounts will be worth looking at with a fine tooth comb.

[BlackPeter]

They werent due to pay a dividend for a few more years yet. Must be really scalping passengers.

They are, but not with my money ; Booked this winter a trip to Europe. Highest quote was from AIR, who basically tried to sell me code shared Air Singapore flights, just a bit more expensive than the original (which I booked).

[Crackity]

Balance sheet repair meant that besides the dividend resuming, there was potential for share buy-backs.

Steele said the airline could finish the current financial year with about $1.1b of net debt, and gearing (including leases) of 35 per cent, well below the company's target range of 45-55 per cent.

Air NZ guidance is for an underlying interim profit of between $295m and $325m. Jarden forecasts $312m when the airline releases its six-month results on February 23.


NzHerald snippet today from behind the paywall.

[Teitei]

Sp recovery well behind that of Qantas so the result should give the sp a nice boost.

[Basil]

Balance sheet repair meant that besides the dividend resuming, there was potential for share buy-backs.

Steele said the airline could finish the current financial year with about $1.1b of net debt, and gearing (including leases) of 35 per cent, well below the company's target range of 45-55 per cent.

Air NZ guidance is for an underlying interim profit of between $295m and $325m. Jarden forecasts $312m when the airline releases its six-month results on February 23.


NzHerald snippet today from behind the paywall.

Ride that momentum and good for you mate.  Just remember the Beagle's advice to ensure you are seated right next to the emergency exit door, know how to use it and have your parachute ready.  Don't affix your seat belt so you can make a lightening quick escape as soon as severe turbulence strikes.

[Crackity]

Yep - don't want to take your eye off the ball with this one 

TA and FA lining up at the mo

[KW]

One thing to watch for is the reduction in credits (people who are owed a flight due to covid cancellations).  Currently credits sit as a liability on the balance sheet, and are moving off that to income as people book flights.  One of the reasons why AIRNZ can charge hefty prices at the moment is because customers have to spend their credits, and are therefore being held hostage to whatever the airline feels like charging because they already have your money.  Once these credits have been used up, customers are not going to be as price insensitive when its real money coming out of their bank account, and they are free to shop around and choose other airlines.

Anecdotally, I just flew back from Auckland to Christchurch.  A Jetstar flight left just before mine, and it was packed (we shared the same gate lounge).  The Air NZ flight was practically empty, I had an entire row of seats to myself.  So the winds may already be changing.   Personally speaking, the chances of me paying Air NZ $430 for a flight to Auckland when I can fly Jetstar for under $200 is NIL.

[Poet]

One thing to watch for is the reduction in credits (people who are owed a flight due to covid cancellations).  Currently credits sit as a liability on the balance sheet, and are moving off that to income as people book flights.  One of the reasons why AIRNZ can charge hefty prices at the moment is because customers have to spend their credits, and are therefore being held hostage to whatever the airline feels like charging because they already have your money.  Once these credits have been used up, customers are not going to be as price insensitive when its real money coming out of their bank account, and they are free to shop around and choose other airlines.

Anecdotally, I just flew back from Auckland to Christchurch.  A Jetstar flight left just before mine, and it was packed (we shared the same gate lounge).  The Air NZ flight was practically empty, I had an entire row of seats to myself.  So the winds may already be changing.   Personally speaking, the chances of me paying Air NZ $430 for a flight to Auckland when I can fly Jetstar for under $200 is NIL.

You are spot on with that analysis KW. I think AIR is seriously underestimating the reputational and loyalty damage that it is suffering due to its opportunist behaviour. People know when they are being tucked, and they often have long memories.

[Crackity]

You are spot on with that analysis KW. I think AIR is seriously underestimating the reputational and loyalty damage that it is suffering due to its opportunist behaviour. People know when they are being tucked, and they often have long memories.

Not gonna be an AIR shareholder again Poet?

[Poet]

Not gonna be an AIR shareholder again Poet?

No, it's not for me atm - I'm really not a fan of the way they are being run and I think this will start to show in the bottom line at some stage. For another example, having your call centre phones repeating the well-worn message that you are experiencing higher than usual call volumes for three years running starts to wear a bit thin with your customers. Not saying there isn't money to be made by traders though but that's not in my skill set so I'll stay away.

[Basil]

Good that Covid numbers are coming down in N.Z. under 10,000 per week now but the idea of being shoehorned into a tiny space with strangers right up inside your personal space and breathing everyone else's exhaled air is still very unappealing.  Add in egregious pricing and even if you can get a half reasonable fare with Jetstar, their truly appalling service and extremely cramped seats...frankly if I can't drive somewhere in my own car I'm not going.  Wonder how many others are still feeling this way?

I still think AIR's balance sheet is in very poor shape.