Morningstar | Higher Fuel Prices Will Continue to Weigh on Qantas' Near-Term Earnings
Qantas Airways is Australia's largest domestic airline with around two thirds market share via its dual brand strategy. It effectively operates in a competitive duopoly with Virgin/Tiger in Australia, and its international partnerships helps to combat international market forces. The combination of the cessation of the recent domestic capacity war, the cost-reduction programme, the benefit from low oil prices, and the focus on optimising its capital structure are driving a significant turnaround in profitability, albeit in the face of rising competition on international routes. Qantas operates in a highly cyclical industry, and earnings are sensitive to fluctuations in oil prices and the AUD/USD exchange rate.Qantas Airways is engaged in the operation of international and domestic air transportation services, the provision of freight services and the operation of a Frequent Flyer loyalty program. Co. comprises following operating segments: Qantas Domestic, Qantas International, and Jetstar Group, all of which comprises its passenger flying businesses; Qantas Freight, which comprises its air cargo and express freight business; and Qantas Loyalty, which comprises its customer loyalty recognition programs.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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