Breaking formation: Why one major investment bank thinks Qantas can’t outrun poor service

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Opinion: Breaking formation: Why one major investment bank thinks Qantas can’t outrun poor service | EKnightOfficial

That said, even the higher airfares cannot completely offset the revenue impact of taking 10 per cent capacity out of the market.

“If industry constraints have caused on-time performance issues, logically, we expect a flatter capacity profile in 1H23 as more realistic, which is less than what guidance and the market is indicating,” Citi said in the note to investors.On Citi’s estimates, Australia’s flight cancellation rate was 5.8 per cent in June and 38 per cent of flights were delayed. But Qantas was above average at 8.1 per cent and had 46 per cent of flights delayed.

This represents a significant divergence from the broker pack - only one other analyst has a sell on Qantas and the majority have a buy recommendation. The consensus for Qantas’ 2023 earnings sits at about $837 million.

 

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EKnightOfficial Surely whatever it’s costing Qantas in baggage claims (extra delivery and compensation) would be more than just rehiring it’s terminated staff (and terminating Swissport for breach of contract).

EKnightOfficial geez done anyone else feel alarmed by this photo of the plane, doesn’t inspire any confidence

EKnightOfficial the unions have orchestrated the downfall of Qantas, it's impossible to run a competitive international airline whilst paying non competitive Aust wages & conditions, try as he did, there are limits to what labour can be done offshore, so its 'another bites the dust' who cares🤷‍♂️

EKnightOfficial Qantas vax cult.

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