Qantas cuts staff, flights to counter fuel price hit
Qantas shares closed 4 cents higher at $2.19 after the company announced it will reduce international and domestic capacity, retire aircraft, reduce management positions and maintain fuel surcharges in an effort to offset soaring fuel prices. Roger Montgomery of Montgomery Investment Management told ABC report Michael Janda the company’s share price is lower than a decade ago for good reason. Read article.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Andrew
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Hi Roger,
The airline game surely is a bad one for investors. Branson was right about the best way to become a millionaire is to start off as a billionaire and buy an airline.
Would it be also reasonable to expect that the significant rise in jet fuel costs would also be bearing down on companies that use private jets to conduct business duties and there for increasing the operating costs of the business leading to a potential decrease in profitability?
I am not sure what the arrangements are, but they would be buying the fuel from the same place wouldn’t they?