Qantas turnaround spells trouble for aeroholics

These are dangerous times for ‘aeroholics’. Just about every article following Qantas’s half-year results has had a positive spin: the company has turned itself around in only a year; capacity/demand has stabilised; the market share war with Virgin Australia has abated; fuel prices have plummeted; profits are set to explode.It makes for a heady cocktail but these factors are already accounted for in a share price that has almost trebled in little more than a year. The greatest danger now is in forgetting the risks, and these are laid bare by last year's performance.Just as the tailwinds are blowing for...

These are dangerous times for ‘aeroholics’. Just about every article following Qantas’s half-year results has had a positive spin: the company has turned itself around in only a year; capacity/demand has stabilised; the market share war with Virgin Australia has abated; fuel prices have plummeted; profits are set to explode.

It makes for a heady cocktail but these factors are already accounted for in a share price that has almost trebled in little more than a year. The greatest danger now is in forgetting the risks, and these are laid bare by last year's performance.

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