Qantas has seen its biggest fall in eight months as the markets ponder over a sharp increase in capital expenditure in the coming years as it invests in aircraft and the business.
Forecast capex in FY23 will increase by up to $400m to between $2.6bn and $2.7bn, which. The increase in capex is much higher than expected by analysts.
Markets are also weighing if a record half-year profit of $1.4bn is as good as it will get for the airline with Asian airlines returning to Australia, which Qantas sees will result in airfares cooling from the second half of the year.
Shares in Qantas were down 5.7 per cent to an intraday low $6.10 at 11.30am AEDT after it lost 36.5c from its last close.
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It certainly isn't 'as good as it gets' for the QAN CEO and his cabal of highly paid executives!
Lots more moolah on the way for them.
(And the SP has decreased further, to A$6.035 as at 1320 AEDT, down A$0.435 or 6.72pc).
By the way, I have never held QAN or any airline/airport scrip. But I am (like many) a former user of QAN flights (though not its health insurance, wine offerings, credit cards...)
While I also don't use them, mainland Chinese airlines gradually ramping up flight frequencies may well push down fares on Asian routes, and also as a side issue, to/from UK and Europe.
