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.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles