Why Are These Two Aviation Stocks On A Downtrend Today- AIZ And QAN

Why Are These Two Aviation Stocks On A Downtrend Today- AIZ And QAN

Today (i.e., 30 January 2019), the oil prices have increased in the global market. Due to the increase in the oil prices, many aviation stocks witnessed a fall in their share prices during the days’ trade. The below mentioned two aviation stocks have witnessed a substantial fall in their share prices. Let’s take a closer look at these stocks:

Air New Zealand Limited (ASX: AIZ)

Airline company, Air New Zealand Limited (ASX: AIZ) today provided an update on its trading outlook for FY19 in which the company announced that it is now expecting its earnings before taxation to be in the range of $340 million to $400 million for FY 2019. Earlier the company was expecting the Underlying earnings before taxation be around $425 Mn to $525 Mn, however, after including an estimated $30 Mn to $40 Mn impact of scheduled changes, the company has reduced its FY 2019 guidance. The schedule changes were prompted by the global Rolls-Royce engine issues which impacted the company’s business both commercially and operationally. But it is expected that this issue will improve as the year progresses. After the release of the revised guidance, the share price of the company declined by 14.286 percent as on 30 January 2019.

In December 2018, the airline carried 1,768 passengers which was 4.5% more than the previous corresponding period. As per the company’s announcement, the Company’s Board is expecting to announce an interim dividend of 11 cents per share.

In the past six months, the share price of the company increased by 5.00 percent as on 29 January 2019. AIZ’s shares traded at $2.700 ( -14.286% intraday) with a market capitalization of circa $3.54 billion as on 30 January 2019.

Qantas Airways Limited (ASX: QAN)

Airline Company, Qantas Airways Limited’s (ASX: QAN) shares were down by around 5.093 percent as on 30 January 2019. As the company has not published any price sensitive information today, the intraday rise in oil prices seems to be the main reason behind this downfall on the stock price movement. For Q1 FY 2019, the company reported total revenue of $4.41 billion which was 6.3% higher than the previous corresponding period (pcp). According to the company, the strong revenue performance helped it in partially offsetting a rise in non-fuel costs. The Group Unit Revenue (RASK) in the Q1 FY19 grew by 5.4 percent compared to pcp, substantially offsetting higher fuel costs. During the quarter, the company’s total Group capacity decreased by 0.3 percent. According to the company, it is expecting to deliver around $400 Mn in transformation benefits in FY 2019. Recently the company announced the resignation of Anna Rachel Pritchard from the role of Company Secretary of Qantas Airways Limited.

In the past six months, the share price of the company decreased by 13.25 percent as on 29 January 2019. QAN’s shares traded at $5.590 with a market capitalization of circa $9.58 billion.


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