Qantas cuts costs to stay in profit
The airline’s profit is a quarter of what it was ten years ago. If it had not managed to slash its staff costs, Qantas would have made a loss this year. 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.
Greg Mc
:
I suppose those who own Qantas because ‘it pays a good dividend’ won’t be happy today.
In some ways I feel a bit sorry for airline execs in that no matter how good a job they do, they’re still going to go backwards. Your assessment Roger, (which I’m sure we all could have predicted almost word for word) was pretty scathing – I wonder whether Joyce himself secretly agrees or whether he actually thinks Qantas is going as well as he tried to portray. The lack of that dividend might give a clue as to what he and the board really think.
Roger Montgomery
:
Greg,
The business boat you get into is more important than who’s rowing.
Lloyd
:
These guys are not rowing. They are bailing…continuously and furiously!
Craig
:
Hi Roger,
Well, that disappearing dividend seems to add credibility to your statement (on page 230) that there is no such thing as an ‘income stock’.
Regards,
Craig.
Roger Montgomery
:
Indeed! No such thing as a ‘defensive’ stock, or a ‘cyclica’l stock or a ‘balanced portfolio’ either. Nonsense!