Qantas could afford to return $2.4b of cash to investors: Deutsche Bank

[Jonathan Fairfield]

Qantas could afford to return $2.4b of cash to investors: Deutsche Bank

Qantas Airways could return an additional $2.4 billion of cash to shareholders this financial year due to an expected record-breaking financial performance driven by its cost cutting program and the lower oil price, according to Deutsche Bank.

Qantas has already announced plans to reward shareholders with a $505 million capital return of 23c a share and a share consolidation in November, but Deutsche analyst Cameron McDonald said he expected there was more to come.

He said it was possible the airline could return 50c a share alongside its half-year results in February and up to another 70c a share alongside its full-year results next August.

Read more: http://www.afr.com/business/transport/aviation/qantas-could-afford-to-return-24bn-of-cash-to-investors-deutsche-bank-20150930-gjxuei

[peterjackson]

The cost reduction measures have been rewarded by an outstanding share performance in the past month and on top of that, great dividends.

A true success story amongst mainline airlines.

[impulse]

Qantas Airways could return an additional $2.4 billion of cash to shareholders

But instead, they're giving the shareholders a tiny dividend, while lining the pockets of all the high level executives who will receive huge bonuses for the windfall from low fuel prices.... As if they had anything to do with it.

High fives all around.

[empireboy]

Nice to hear a good news story!

[The Beguiled]

"Cost cutting and the lower oil price" but they made a major portion of the profits from the Fuel Surcharge and their Frequent Flyer Program.

The surcharge from Australia to United States is AU$340 and to London / Frankfurt AU$380 and Sydney to Bangkok AU$200.

The fuel surcharge was introduced to help offset the high oil prices but Qantas has forgotten about it as it is a real money spinner for them.

Lower oil prices but still high fuel surcharge to offset higher oil prices seems a contradiction!

[lvr181]

Company executives never lose out financially when laying off 100s or 1000s of staff in order to make a profit. But do those same executives (directors etc) take salary/bonus cuts when a company is failing? Nah, don't think so!

[AlexRRR]

The cost reduction measures have been rewarded by an outstanding share performance in the past month and on top of that, great dividends.

A true success story amongst mainline airlines.

Well I'm not so sure about that....the CO got a drilling in the press about 12 months ago shown to look like a real dill.......do you think that falling fuel prices helped to put a few extra $ into the profit box?

[waldroj]

To the CEO, THAI Airways

Please contact QANTAS for advice before my shares become worthless!

Note, no dividend now for two years.