PRESENTATION LOADING…
Global Airlines
Presented by
Iris
Jonathan
Caroline
Sean
Global Airlines
Contents
 Industry Analysis - Iris
 American Airlines  British Airways  Singapore Airlines -
Industry Outlines
1. ASIA and CENTRAL EUROPE hold the greatest
revenue potential
2. Divergent regional financial performances
3. Alliances between airlines: rationale & benefits
4. Regional low-cost carriers
Current market environment
Globalization
Focus on Costs
More challenge to
1. Traffic RecoveryEmerging economies
become a low tourism
cost
Recovery
Labor 1. TrafficInternational
Higher
industry
cost
Fuel price
Traffic Recovery
Hubs key to new routes success
Globalization
2. Focus on3.Costs
Re-engineering processes
The need to cut
costs
•Traffic rebounded strongly in 2004
Expansion
through
both fragmentation and
•Recovery strongest
in Asia
consolidation
Improve fuel efficiency
•Freight traffic led the recovery
•Passenger traffic to grow 5.3%
•ASK - available seat-kilometers
(a measure of airline3.capacity)
Globalization
2. Focus on Costs
•RPK – Revenue passenger-kilometers
Demand-Air Travel
Demand- Cargo
-Higher growth than the passenger market
-Significant future demand
-Asian freighter fleet to grow the quickest
-Large demand for new large freighters
Profitability
- The challenge of living
with a high oil price
- Yields continue to fall in
deregulated markets
Costs Management
 The challenge
of living with a
high oil price
 Labour costs
remain a major
challenge
Forecast highlights
Regional
Summaries
North America
• Economic growth in North America is driven by
strong increases in productivity and continuing
population growth.
• Air travel growth or the region's carriers should
average 4.1% annually through 2024.
• 85% of deliveries to North American airlines over
the next 20yrs are forecast to be in regional jet and
single-aisle airplanes.
• The international market will continue to fragment
as more point-to-point service and additional city
pairs and frequencies are added.
Europe
 Europe is a blend of smaller developing economies and
larger mature ones.
 The rise of low-cost carriers continues to generate new
travel growth in Europe.
 Mainline network carriers will growth their international
networks largely operating hub-and-spoke systems.
 More than ¾ of the European fleet will continue to be
regional jets and other single-aisle airplanes.
 The share of midsize twin-aisle airplanes will increase
from 15% to 20% over the nest 20yrs.
Northeast Asia- Japan & Korea
 GDP growth in Northeast Asia is forecast at 1.8% over
the next 20 yrs.
 Airline deregulation in Japan, gradual liberalization,
and globalization stimulate traffic.
 Travel is often distant, for example, to Europe, North
America, and Oceania.
 The % of the Northeast Asia fleet consisting of midsize
twin-aisle airplanes will rise from 40 % to nearly 50%
over the next 20yrs.
Current Stock Infromation
As of November 4, 2005
• Stock Price: $14.19
• Symbol: AMR
• Exchange: NYSE
• 52-week Range: 7.83 – 14.49
• Avg Vol: 4,643,270
• Market Cap: 2.374B
• Shares Outstanding: 164M
• Div Date: 15 March 2005
1-Year Performance
5-Year Performance
Sept 11
SARS
Company Information
• AMR is the parent company of American Airlines and A
merican Eagle Airlines.
• American Airlines is the world's largest carrier.
• AMR serves more than 250 cities in more than 40 count
ries and territories with approximately 3,900 daily flights
• The combined network fleet numbers more than 1,000
aircraft.
• Major Shareholders:
FMR Corporation
Primecap Management Company
Oppenheimer Funds, Inc.
Fidelity Growth Company Fund
18.9M
14.9M
10.2M
14.9M
Management Team
Gerard J. Arpey – Chairman, President & CEO of AMR and American
•
CEO since 2003, Chief Operating Officer from 02-03, Executive Vice President o
f Operations from 2000-02, CFO from 95-00, Senior Vice President of Planning
92-95, various management positions since 1982.
Daniel P. Garton – Executive Vice President of Marketing
•
Executive Vice President of Customer Service from 2000-02, Senior Vice Presid
ent of Customer Service from 98-00, various management positions since 1984.
James Beer – Senior Vice President of Finance & CFO
•
Vice President of American from 98-03 and various management positions since
1991.
Gary F. Kennedy – Senior Vice President & General Council
•
Vice President of Corporate Real Estate from 96-03, attorney and various mana
gement positions since 1984.
Charles D. MarLett – Corporate Secretary
•
Joined American as an attorney in 1984.
Qualitative Analysis:
Recent Developments and AMR
Specifics
COMPETITION
• Intense competition domestic and international.
• Increased competition from low cost carriers.
– “Indefinite” reduction in pricing power.
– Weak revenues have resulted in persistent large operating losses in rec
ent years.
• Competing carriers reorganizing in or out of Chapter 11 may be succ
essful in lowering operating costs through renegotiated labor, supply
, and financial contracts.
• Founding member of the oneworld alliance with British Airways.
– Aim is to enhance customer service and smooth connections.
LABOR
• Reduced workforce by 20,000 since 2001.
• Reduced operating expenses by 1.8 billion in 2003 through a co
mbination of changes in wages, benefits, and work rules
• Wages, salaries and benefits currently represent about 36% of o
perating expenses down from 41% in 2002.
• Average full-time equivalent number of employees for the year e
nded Dec 31, 2004 was 92,100.
• Majority of employees are represented by labor unions and cove
red by collective bargaining agreements.
– Current agreements with AMR’s three major unions do not become
amendable until 2008.
REGULATIONS
• Liability for numerous suspected and confirmed cases of environ
ment contamination (approximately $150 million).
• Security: imposed minimum $2.5 per enplanement security servi
ce fee to pay for enhanced security measures.
– Proposed increase to $5.50 with no assurance that fees may be pa
ssed on to consumers.
FREQUENT FLYER PROGRAM
• American established AAdvantage to develop customer loyalty b
y offering awards to travelers for continued patronage.
– Members earn mileage credits for flights on participating airlines or
by using services of other program participants, including hotels an
d car rental companies.
– American reserves the right to change the program at any time with
out notice and may end the program with six months notice.
– Company believes this program is “one of its competitive strengths.
”
FUEL
• Fuel price increase negatively impacted expenses by $1.1 billion
during 2004.
• Fuel hedging program reduced expense by approximately $99
million in 2004.
• Liquidity problems are expected to negatively impact hedging ab
ilities in the future.
INSURANCE
• The U.S. government no longer provides commercial war-risk in
surance to U.S. based airlines covering losses to employees , p
assengers, third parties, and aircraft.
– Liability of $1.9 billion for Terrorist Attacks (September, 2001) and $
500 million related to flight 587 (November 2001).
– One of the Company’s insurance carriers that covers approximately
5 per cent of the Company’s coverage has entered liquidation.
Quantitative Analysis:
Financial Statements
•
•
•
•
•
•
•
Operating Statistics
Earnings
Cash Flow Analysis
Balance Sheet
Profitability
Historical Multiples
Intrinsic Value
Operating Statistics
American Airlines Inc.
Revenue passanger miles (millions)
Available seat miles (millions)
Cargo ton miles (millions)
Passenger load factor
Passenger revenue yeild per passenger mile (cents)
Passenger revenue per available seat mile (cents)
Cargo revenue yeild per ton mile (cents)
Operating expenses per available seat mile
Fuel comsumption (gallons, in millions)
Fuel price per gallon (cents)
Operating aircraft at year end
Regional Affiliates
Revenue passenger miles (millions)
Available seat miles (millions)
Passenger load factor
Year ended December 31,
2004
2003
2002
130,164
120,328
121,747
174,015
165,209
172,200
2,203
2,000
2,007
74.80%
72.80%
70.70%
11.54
11.91
11.8
8.63
8.67
8.39
28.36
27.87
27.73
9.73
10.15
11.15
3,014
2,956
3,163
121.2
87.5
76
727
770
819
7,283
10,835
67.20%
5,516
8,597
64.20%
4,576
7,248
63.20%
Earnings
2004
18,645
18,789
(761)
(4.74)
(in millions, except per share amount)
Total Revenue
Operating Expenses
Net Income (loss)
EPS
2003
17,440
18,284
(1,228)
(7.76)
2002
17,420
20,750
(3,155)
(22.57)
25,000
20,000
15,000
Total Revenue
10,000
Operating Expenses
Net Income (loss)
5,000
2000
2001
2002
(5,000)
Years
2003
2004
2001
18,969
21,439
(1,762)
(11.43)
2000
19,703
18,322
813
5.03
2004 Revenue Breakdown
Other
6%
Cargo
3%
Passenger
(Regional
Affiliates)
10%
Passenger
(American
Airlines)
81%
Operating Expenses
(in millions)
Employee Expenses
Aircraft Fuel
Depreciation and ammortization
Other rentals and landing fees
Selling Expenses
Maintanence, materials and repairs
Aircraft rentals
Food service
Other operating expenses
2000
6,783
2,495
1,202
999
1,037
1,095
607
777
3,327
18,322
2001
8,032
2,888
1,404
1,197
835
1,165
829
778
4,305
21,433
2002
8,392
2,562
1,366
1,198
1,163
1,108
840
698
3,423
20,750
Major Contributors to Operating Expenses
9,000
Employee Expenses
8,000
7,000
Aircraft Fuel
6,000
5,000
4,000
Depreciation and
ammortization
3,000
Selling Expenses
2,000
Maintanence, materials
and repairs
1,000
2000
2001
2002
Year
2003
2004
2003
7,264
2,772
1,377
1,173
1,063
860
687
611
2,477
18,284
2004
6,719
3,969
1,292
1,187
1,107
971
609
558
2,377
18,789
2004 Operating Expense
Breakdown
Other operating
expenses
13%
Food service
3%
Aircraft rentals
3%
Employee
Expenses
36%
Maintanence,
materials and
repairs
5%
Selling Expenses
6%
Other rentals and
landing fees
6%
Depreciation and
ammortization
7%
Aircraft Fuel
21%
Cash Flow Analysis
Cash Flow from Operating Activities
Net cash provided (used) by operating activities
Cash Flow from Investing Activities
Capital expenditure
Net increase (decrease) in short-term investment
Net decrease (increase) in restricted cash
Proceeds from sale of equipment, property and investment
Other
Net cash used for investing activities
Cash Flow from Financing Activities
Payment on long-term debt
Proceeds from:
Issuance of long-term debt
Sale-leaseback transaction
Exercise of stock option
Net cash provided by financing activities
Net increase in cash
Cash at beginning of year
Cash at end of year
717
601
(1,111)
(1,027)
323
49
265
(12)
(1,048)
(680)
(640)
256
395
24
(645)
(1,881)
540
(248)
220
(24)
(1,393)
(1,653)
(886)
(687)
1,977
7
331
120
120
945
1
60
16
104
120
3,099
91
3
2,506
2
102
104
Balance Sheet Summary
(in millions)
Assets
Current
Fixed
Total
Liabilities
Current
Long-term
Other
Total
Shareholders Equity
2004
2003
2002
2001
2000
4,917
23,856
28,773
4,682
24,648
29,330
4,937
25,330
30,267
6,571
26,270
32,841
5,179
21,034
26,213
7,018
12,436
9,900
29,354
6,559
11,901
10,824
29,284
7,240
10,888
11,182
29,310
7,512
8,310
11,646
27,468
6,990
4,151
7,896
19,037
46
957
5,373
7,176
(581)
Balance Sheet Summary: Trend
Lines
35,000
Value (in millions)
30,000
25,000
20,000
Assets
15,000
Liabilities
10,000
Equity
5,000
(5,000)
2000
2001
2002
Years
2003
2004
Financial Leverage Examined
(in millions)
Long-term debt
2004
12,436
2003
11,901
2001
2002
2002
10,888
2001
8,310
14,000
Value (in millions)
12,000
10,000
8,000
6,000
4,000
2,000
2000
Years
2003
2004
2000
4,151
Future Debt Obligations
(in millions)
Operating lease payments
Aircraft acquisition commitments
Company purchase agreements
Long-term debt
Capital lease obligations
Other purchase obligations
Other long-term liabilities
Payment Due By Year(s) Ended December 31,
2006
2008
Through Through 2010 and
2007
2009
Beyond
Total
2005
12,422
1,092
2,018
1,778
7,534
3,450
345
101
3,004
329
96
141
92
13,095
659
2,470
2,272
7,694
2,056
258
448
400
950
1,973
440
595
326
612
2,103
193
382
409
1,119
Total obligations and commitments
35,428
3,083
6,155
5,277
20,913
Profitability
Year
2000
2001
2002
2003
2004
ROE
11.33%
-32.79%
-366.88%
-2669.57%
130.98%
PROFIT
ASSET
FINANCIAL
MARGIN
TURNOVER LEVERAGE
4.13%
75.16%
365.29%
-9.29%
57.76%
611.22%
-20.15%
57.55% 3162.70%
-7.04%
59.46% 63760.87%
-4.08%
64.80% -4952.32%
70000.00%
60000.00%
50000.00%
40000.00%
ROE
PROFIT MARGIN
30000.00%
ASSET TURNOVER
FINANCIAL LEVERAGE
20000.00%
10000.00%
0.00%
Year
-10000.00%
2000
2001
2002
2003
Historical Multiples
Year
2000
2001
2002
2003
2004
P/E
6.13
-2.69
-0.67
-1.07
-2.30
P/S
0.25
0.25
0.14
0.08
0.09
P/B
0.70
0.88
2.46
28.65
-3.03
35.00
30.00
Percentage
25.00
20.00
P/E
15.00
P/S
P/B
10.00
5.00
0.00
2000
2001
2002
-5.00
Years
2003
2004
Intrinsic Value
Year
2000
2001
2002
2003
2004
Benchmark
Value of
Historical P/E
-0.12
-0.12
-0.12
-0.12
-0.12
Intrinsic
Value
-0.62
1.39
2.75
0.94
0.58
EPS
5.08
-11.43
-22.57
-7.76
-4.74
Market
Value
30.83
30.74
15.11
8.34
10.92
35.00
Value ($ per share)
30.00
25.00
20.00
Intrinsic Value
15.00
Market Value
10.00
5.00
0.00
-5.00
2000
2001
2002
Years
2003
2004
Management Discussion and Analysis
(2004 Annual Report)
• “It will be very difficult, absent continued restructuring
of its operations, for the Company to continue to fun
d its operations on an ongoing basis or for the Comp
any to become profitable if the overall industry revenu
e environment does not improve and fuel prices rema
in at historically high levels for an extended period.”
AMR Summary
•
•
•
•
Historically weak revenues and high operating costs
High fuel prices
Reduced credit rating (significantly below investment grade)
Significant debt and severe liquidity problems
Negative impact on firms ability to sustain
operations over the long term.
Recommendation: Sell
Current Stock Information
As of November 4, 2005
• Price: 306.00 pence
• Symbol: BAB & BAY (ADR)
• Exchange: LSE & NYSE
• Exchange rate: ₤1 = CAD$2.08
• 52-week range: 215.00 - 321.00 pence
• Average vol: 13,606,800
• Share outstanding: 1,082,903,000
• Market capitalization: ₤3,316,683,180
Company History
•
•
•
•
•
•
1919 – Aircraft Transport & Travel
1924 – Imperial Airways
1939 – British Overseas Airways Corp.
1949 – British European Airways
1974 – British Airways
1987 – Privatization of British Airways
Company Information
• BA is the leading international airline
• Main activity: operation of international & domestic scheduled
passenger airline services
• Operating bases: Heathrow & Gatwick
• Extensive international route networks: 149 destinations in 72
countries (as of March 31, 2005)
• Major institutional shareholders:
– Barclays Global Investors (UK) – 9.59%
– Franklin Templeton Investment Management – 5.68%
– Fidelity Investment Services – 3.91%
• Subsidiary: BA CitiExpress
• Franchises: Comair, GB Airways, British Mediterranean, Loganair
and Sun-Air of Scandinavia
Management Team
Martin Broughton - Chairman
Non-executive director since May 2000, Deputy
Chairman from November 2003 becoming Chairman
in July 2004
Willie Walsh - Chief Executive Designate
Executive Board Member from May 2005
John Rishton - Chief Financial Officer
Executive Board member since September 2001
Martin George – Commercial Director
He joined British Airways in 1987 and was appointed
Commercial Director in August 2004
Alliances & Partnerships
Carrier
Aer Lingus
Alaska Airlines
America West
American Airlines
BMED
Cathay Pacific
Comair Pty Ltd
Finnair
GB Airways
Iberia
Japan Airlines
Jet Airways±
LAN
Loganair
Qantas
SN Brussels Airlines
Sun-Air of
Scandinavia
oneworld Codeshare Franchise
X
X
X
X*
X
X*
X
X*
X
X
X
X*
X
X
X*
*oneworld affiliate members
± available to Indian residents only
X
X
X
X
X
X
X
X
X
X
X
BA
Executive
Club
benefits
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Qualitative Analysis
•
•
•
•
•
Competition
Market dynamics
Regulations
Firm strategy
Risks
Competition
•
•
•
•
•
•
Lufthansa
Air France-KLM
Small domestic & European carriers
Delta
United
Alliances
Market Dynamics
• 1997 – to launch low-fare, no-frills airline
• May 2001 – e-ticketing
• Post 9/11
•
•
•
•
–
–
–
–
Business Response Scheme
Heavy promotions
Club World seat / flat bad
Cut European air fairs
Feb 2002 – implemented the FSAS program
Dec 2002 – switched to Airbus
Oct 2003 – withdrew Condorde
2008 – new Terminal 5 at Heathrow
Regulations
• IATA
–
–
–
–
Single European sky
Regulation of monopoly suppliers
Equal treatment of air and rail
Elimination of outdated regulations
• EU & US
– Transatlantic air treaty
• BA & AA
– Codesharing
Strategy
“We will continue to simplify and modernise our business.
New technology is key to simplifying processes for our
customers.” (Rod Eddington, CEO)
• Simplification of the business
–
–
–
–
Cost structures
Network operation
Fleet & network strategy
Achieve 10% operating margin
Risks
•
•
•
•
•
•
•
•
Government regulation
Fluctuations in the fuel price
Terrorism
Insurance market failure
Epidemics
Political restrictions
Employment law
Environmental regulation
Quantitative Analysis
•
•
•
•
•
Income statement analysis
Balance sheet analysis
Cash flow analysis
Operating statistics
Performance measures
Income Statement
Revenue Breakdown
2005 Revenue Composition
2005 Revenue by Area of Original Sale
7.4%
10.6%
9.6%
6.2%
0.2%
50.2%
17.7%
83.0%
Scheduled
Non-scheduled
Cargo
Other revenue
15.0%
UK
Continental Europe
The Americas
Africa, Middle East & Indian sub-continent
Far East & Australasia
Revenue Breakdown
Geographic Revenue
Operating Expenses Summary
2005
2,273
687
106
1,128
502
556
930
488
603
7,273
(₤ millions)
Employee costs
Depreciation & amortization
Aircraft operating lease costs
Fuel & oil costs
Engineering & other aircraft costs
Landing fees & en route charges
Handling charges, catering & other operating costs
Selling costs
Accomodation, ground equip. costs & currency differences
2004
2,180
679
135
922
511
549
934
554
691
7,155
2003
2,107
734
189
842
592
576
961
706
686
7,393
2002
2,409
770
199
1,028
673
615
1,110
824
822
8,450
2001
2,376
715
221
1,102
662
645
1,303
1,135
739
8,898
Trend in Major Contributors to Operating Expenses
2,500
2,000
Employee costs
1,500
Fuel & oil costs
1,000
Handling charges, catering & other
operating costs
Selling costs
500
0
2005
2004
2003
2002
2001
2005 Operating Expenses
Accomodation,
ground equipment
costs & currency
differences
8.3%
Selling costs
12.8%
Handling charges,
catering & other
operating costs
14.6%
Landing fees & en
route charges
7.2%
Engineering &
other aircraft
costs
7.4%
Employee costs
26.7%
Depreciation &
amortization
8.0%
Aircraft operating
lease costs
2.5%
Fuel & oil costs
12.4%
Earnings Highlights
(₤ millions, except per share amount)
Total revenue
Operating expenses
Net income (loss)
EPS (diluted, pence)
2005
7,813
7,273
251
23.0
2004
7,560
7,155
130
12.1
2003
7,688
7,393
72
6.7
9,000
7,000
5,000
3,000
1,000
-1,000
2005
2004
2003
Total revenue
Operating expenses
Net income (loss)
2002
2001
2002
8,340
8,450
-142
-13.2
2001
9,278
8,898
67
6.2
Balance Sheet
Fixed Assets
Fixed Assets
(₤ millions)
Intangible Assets
Goodwill
Landing rights
Tangible Assets
Fleet
Property
Equipment
Investments
Subsidiary undertakings & quasi-subsidiary
Associated undertakings
Trade investments
2005
2004
88
102
190
93
75
168
6,748
959
445
8,152
7,104
1,042
491
8,637
120
30
150
501
30
531
Debt & Shareholders’ Funds
Balance Sheet Summary
(₤ millions)
Assets
Fixed
Current
Liabilities
Short-term
Long-term
Provisions
Shareholders' Equity
2005
2004
2003
2002
2001
8,492
2,844
11,336
9,336
2,765
12,101
10,144
2,725
12,869
11,078
2,559
13,637
11,123
2,550
13,673
2,980
4,346
1,326
8,652
2,684
11,336
2,996
5,486
1,222
9,704
2,397
12,101
2,904
6,553
1,169
10,626
2,243
12,869
3,201
7,097
1,157
11,455
2,182
13,637
3,308
6,901
1,164
11,373
2,300
13,673
Cash Flow Statement
Cash Flow Summary
(US GAAP)
(₤ millions)
Operating
Investing
Financing
Increase/decrease in cash & cash equivalents
Free cash flow
Ending cash balance
2005
1,042
-369
-1,151
2004
906
-564
-834
2003
962
300
-784
2002
544
118
-325
2001
939
-437
-672
-478
673
549
-492
342
1,027
478
662
1,519
337
426
1,038
-170
502
701
Operating Statistics
Ratio Analysis
EPS (diluted, pence)
ROAE
ROA
Profit margin
Debt/Equity ratio
2005
23.0
9.9%
2.2%
6.9%
3.2
2004
12.1
5.6%
1.1%
5.4%
4.0
2003
6.7
3.3%
0.6%
3.8%
4.7
2002
-13.2
-6.3%
-1.0%
-1.3%
5.2
2001
6.2
2.9%
0.5%
68.8%
4.9
Stock Performance
Share price at end of FY (pence)
BVPS (pence)
Market capitalization (₤ millions)
P/E at end of FY
P/B at end of FY
Dividend
Shares outstanding ('000)
2005
2004
2003
2002
2001
315.0
245.5
104.0
276.5
264.0
230.1
204.4
191.8
185.5
194.8
3,411
2,658
1,126
2,981
2,865
13.7x
20.3x
15.5x
-20.9x
42.6x
1.4x
1.2x
0.5x
1.5x
1.4x
0
0
0
0
0
1,082,903 1,082,845 1,082,784 1,082,757 1,082,552
SARS
9/11
NYSE: BAB vs. AMR
Recommendation
• Attractive among the European network
airlines
• Growing premium traffic
• Fuel prices, terrorism, labour costs
• No dividend
• Recommendation
 HOLD
Current Stock Information
As of November 4, 2005
• Price: S$11.50
• Exchange rate: 1S$=0.5876$
• 52-week range: S$10.70-12.90
• Market cap: S$ 10.66 billion
• Share outstanding: 920 million
Background
• Found in Oct. 1972
– Separated from Malaysian Airways
• Spans over 110 cities globally with
about 90 aircrafts (Average age 5yrs)
• Singapore government owned 57% of
shares through Temasek holdings
Background Con’t
• Awards and accolades in 2005
- Skytrax ranked SIA as one of the only three Five
Star Airlines
– OGA(UK) voted SIA the Best airline based in Asia
– Business Traveller (USA) also voted SIA Best
Airline for International Travel, as well as having the
Best First and Economy Classes
Background Con’t
• Alliance Partners:
– Singapore Airlines joined the Star Alliance in April 2000
– Outside of the Star Alliance, cooperation with Virgin Atlantic
Airways, and Malaysian Airlines (MAS)
Background Con’t
•Subsidiaries of SIA
–Silk Air
–SIA Engineering Co.
–SIA Cargo
–SATS (Singapore Airport Terminal Services Ltd)
Group Finance Review
Group Finance Review
Group Finance Review
2005
Net Debt Equity Ratio 0.19
2004
0.20
Group Finance Review
Group Finance Review
Group Finance Review
Operating Performance
Operating Performance
Cost Structure
Cost Structure
Cost Structure
Cost Structure
Cost Structure
Profitability-Conclusion
Four engines of profit growth:
1 Capacity (ASK): ↑18.6% Higher than expectation
2 Load factor:
↑ 1.4%
Lower than expectation
3 Yield: (Rev/RPK) ↑ 2.3% Higher than expectation
4 Cost: CASK (cost per available seat kilometer )
Fuel CASK ↑ 23%
Non-Fuel CASK ↓ 11%
Better than expectation
Three of them higher than expectation to lead earnings growth
(expectations are from JP Morgan's Analysis)
Market Information
5-Year Performance
Sept 11
SARS
One-Year Performance
Major Shareholders
Total 88.91%
Market Ratios
Cash Flow Analysis
2005
2004
Net cash from operation activities
2,786.6
Net cash used in investing activities (1,009.9)
Net cash used in financing activities (394.7)
Total cash inflow
1,382.0
Ending Cash
2,814.0
1.4
Cash per share
3.06
(in million)
1,760.5
(606.8)
(413)
740.7
1,49
1.62
Recommendation
Long-term  Hold