Qantas shares closed 4 cents higher at $2.19 after the company announced it will reduce international and domestic capacity, retire aircraft, reduce management positions and maintain fuel surcharges in an effort to offset soaring fuel prices. Roger Montgomery of Montgomery Investment Management told ABC report Michael Janda the company’s share price is lower than a decade ago for good reason. Read article.
Roger Montgomery's popular value investing guide book for the stock market shares his tightly-protected stock investing rules for long-term value investing that you must follow to reproduce his excellent stock market returns.
Hi Roger,
The airline game surely is a bad one for investors. Branson was right about the best way to become a millionaire is to start off as a billionaire and buy an airline.
Would it be also reasonable to expect that the significant rise in jet fuel costs would also be bearing down on companies that use private jets to conduct business duties and there for increasing the operating costs of the business leading to a potential decrease in profitability?
I am not sure what the arrangements are, but they would be buying the fuel from the same place wouldn’t they?