sabre,the problem hasn't been solved.here is some info from the...

sabre,

the problem hasn't been solved.

here is some info from the half years to dec 31 06 and 07.

in the half year to december 06,

1/ oil average $57/barrel
2/ operating expenses were $934.7 million
3/ fuel and oil contributed $262.3 million
4/ npat $124.3 million

so fuel made up 28% of the operating costs

in the half year to december 07

1/ oil averaged $75/barrel
2/ operating expenses were $1,035.8 million
3/ fuel and oil contributed $266.3 million
4/ npat $113.3 million

so fuel made up 25.7% of the operating costs....this is down from 28% even though oil averaged $75 compared to $57 in the corresponding period.

now lets look at what has been announced.

a/ a $50 million cost saving plan
b/ fuel now makes up 35% of the operating costs

now lets assume the following in the june half 08.

1/ operating expenses $1,035.8 million (i will keep it the same as half year to dec 31 07)
2/ fuel and oil contributes 35% of the operating expenses = $362 million.

so vba have announced a $50 million saving plan but fuel costs for the half year to june 08 have risen $96.2 million.

nothing has really been done to address capacity accross the network and yields will likely continue to fall whilst fuel will continue to rise and a loss is likely.

i personally think you needed more done to justify holding.

cheers