VAH 0.00% 8.6¢ virgin australia holdings limited

re recent announcement

  1. 67 Posts.
    That latest announcement was good news not bad. Seems to be a negative sentiment through the blog, but the stats are very good. Consider:
    ASKs do not generate revenue, this simply states future capacity and ideally it would be a few percent ahead of RPKs to allow for seating and route growth. It looks a little high, but Y/Y comparisons are still valueless due to the massive changes and growth in the airline. Also VA just listed their fleet at 100 aeroplanes, and this is very much planned growth. ASKs may be high as routes are developed, but no problems here folks. I’d like to see 4% so 6% is no drama.
    RPK’s is the money shot, this is seats selling and sold during the reporting period, this is the primary income of an airline, and it is expanding nicely. RPKs = Income. Remember introducing Business Class will cause lower load factors, but more importantly, higher yield. Domestic numbers are up 7% and yields are higher than ever. Also note that 80% fuel requirement is hedged for the year, so oil prices are minimal impact this reporting period.
    The international fleet of 777s are in for big tune-ups and repaints to the new livery, so those numbers are lower as expected, but note the seamless transition of the bookings to the code-sharing partners – good work for the virtual airline, the pax never had to leave VAH, they just booked as usual, great.!!! Seamless connections are critical to the success of VA international operations in the next few years, if they get that right, the airline will boom.
    The hiving off of the Velocity Program is a prudent copy of Qantas and shows maturity and the ability to separately account for it’s performance.
    Lastly the share price has retreated this week. Other than short sellers and light profit takers, consider that international investors are NOW able to pick up large parcels - share by share, at low prices. If you sell at all in the next few months, international investment companies and o/seas airlines are laughing at you for selling a very well performing asset, that has already been stated to be desirable and in fact targeted by international investors…Why ever would you sell now…hold em for several months (IMHO) and watch and shoot!!! VAH is still massively undervalued, mark my words…Air NZ, Etihad and Co. will be picking you off, one by one, one after another…
    Good luck…
 
watchlist Created with Sketch. Add VAH (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.