Originally Posted by
Swiss Tony
It's a long time since I studied accountancy, but I think the more inteersting point is the improvement over the year...
Half Year Ended 30-Jun-07 30-Jun-06 % Change
Scheduled Passengers 31,186 20,862 49%
Revenue ($000s) $27,295 $15,711 74%
Operating Loss ($000s) ($31,900) ($29,985) -6%
Loss per share ($2.05) ($3.51) 41%
Operating loss is flat despite the fleet increasing circa. 100% but revenue is (fortunately) going up.
It's sustainable so long as the investors keep believing it's either a sound business model or perhaps ripe for acquisition...
Yep, just needs more volume to spread some of the central fixed overhead across. Must have been expected and I would assume they are broadly on plan? Otherwise they really have got the pricing proposition wrong.
As for takeover, well I am not sure the model is yet proven from a profitability viewpoint to be attractive (unless its a distress situation but even then what would you be buying as say AF or LH or BA? The brand? The STN slots? The aircraft leases? NOt really any value without profits).
I suspect the problem is not so much the resilience of the legacy guys but that rush of all business carriers that entered the market. Given the ceiling on their fare is probably something like 110% of the corporate rate J on BA/VS for corporate travellers, they just need to fly (a lot) more bums. Load factors looking fine so far.