Qantas Airways Limited (ASX: QAN)

Recently, Qantas’ Director, Richard James Barr Goyder, was noted to enhance his indirect interests to over 36k ordinary shares held by Invia Custodian Pty Ltd. The registered holder of the acquired shares, Invia Custodian Pty Limited, held the shares on behalf of the Warrangi Trust and R & J Goyder Superannuation Fund. Initially, it held 10,000 ordinary shares as a trustee for the Warrangi Trust and another 10,000 as a trustee for the R & J Goyder Superannuation Fund. Recently, it acquired 14,000 and 2,500 shares for Warrangi Trust and for R & J Goyder Superannuation Fund, respectively, and the consideration per share was $5.7300. This, in a way, indicates for a good perspective for the shareholders.

As per the recent result by the group, the Net Passenger Revenue was up by 6% in the first half of 2018 against the prior corresponding period. The Board declared an interim dividend of 7 cents per share which will be paid on 12 April 18. On the other hand, concerns on Qantas starting to pay corporate tax in 2019 might impact the group’s performance at a later stage.

Meanwhile, the group along with American Airlines filed a new application with the US Department of Transport seeking an approval to form a joint business which can better serve customers flying between North America and Australia and New Zealand. Primarily, QAN may have to dampen or cancel its A380 service between Sydney and Dallas in case the company fails to get an approval from Trump administration. The group has iterated that this association can lead to $US300 million annually in terms of consumer benefits.

QAN share price rose by 3.7% in the past six months and advanced by 5.56% in past one week, and we see an opportunity given the price movement and recommend a “Buy” at the current market price of $5.86
 

Revenue Trend (Source: Company Reports)

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