It seems like everything is going quite well for Qantas Airways Limited (ASX: QAN) and the company might attract investorsâ attraction moving forward. The company reported decent results for FY 2018 and managed to post underlying PBT of $1.60 billion. The company stated that these results were achieved by them even during the times of higher fuel prices. The strong favourable momentum was also visible in the net freight revenues, and these revenues were helped by the robust growth in regard to the global demand. The companyâs net FCF or free cash flow amounted to $1.4 billion in FY 2018 which implies an impressive YoY growth of 10%. However, during the same period, the company also witnessed robust momentum in the operating cash flows, and these cash flows amounted to $3.4 billion which reflects the growth of 26% on the YoY basis. The primary factor which affects the companyâs performance is the fluctuations in the fuel prices. Thus, the higher the fuel prices, more will be the negative impacts on the company.
Even though the declining oil prices are raising the worries among the investors, it seems like Qantas Airways is actually benefiting from the decline in the oil prices. The oil prices are witnessing a fall primarily because of the tensions related to the over-supply situations. Apart from the worries related to the increased supply levels, the demand for oil is also expected to fall mainly because of the concerns related to the global downturn. The market trackers are waiting for the meeting which would take place on December 6, 2018 as they are expecting that the production levels of oil might get reduced. This expected announcement for the reduction in the production of the oil might help the oil prices to witness a rise.
However, the management of Qantas Airways Limited is of the view that they are well-positioned to tackle the obstacles in case the fuel prices witnesses an uptrend. As per the company, it would be witnessing positive momentum in the cash flows moving forward.
As of now, the Qantas Airways Limited has managed to initiate a buy-back of 4,73,53,052 shares, and thus, it had given A$27,00,80,783.64 in regard to the above-mentioned buyback. The company plans to initiate a total buyback amounting to $332 million which clearly indicates that A$61,919,216.36 is the amount which the company plans to give further.
The stock price of Qantas Airways has been witnessing a favourable momentum. On November 26, 2018, the stock price of Qantas ended the session at A$5.890 per share which reflects that the stock witnessed the rise of A$0.160 per share or 2.792%. The companyâs market cap stood at $9.44 billion.
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