Aviation news analysis
50 SKY SHADES - World aviation news

Qantas completes $500 million share buyback, eyes further shareholder returns

Download: Printable PDF Date: 14 Jun 2016 01:57 category:
Qantas completes $500 million share buyback, eyes further shareholder returns - Finance publisher
Krista Kuznecova
Country: Australia Aircraft: Airplanes Airline: Qantas Airways

Qantas is looking ahead to potentially returning further capital to shareholders after concluding a $500 million share buyback.

In a regulatory filing to the Australian Securities Exchange on Tuesday, Qantas said its $500 million share buy back program bought back 143.6 million shares for a weighted average price of $3.4819 per share since the program began in March.

The highest price paid was $4.21 per share on April 4, while the lowest price paid was $2.91 on June 6.

The $500 million buyback is part of the $1 billion the company has returned to shareholders in 2015/16, following the $505 million capital return at 23 cents a share conducted in the first half of the current financial year.

“A decision on future capital management initiatives will be made by the board and announced with the group’s full year results on 24 August 2016,” Qantas said in a statement on Monday.

Speaking to reporters on the sidelines of the International Air Transport Association (IATA) annual general meeting in Dublin on June 2, Qantas chief executive Alan Joyce said the airline group’s board would look at further capital returns, including a potential dividend, for the next financial year.

“The group has reached its optimum capital structure,” Joyce told reporters.

“We’ve got our investment-grade credit rating back. We are generating a lot of free cash.

“The board will get together at the end of the full year and look at the appropriate ways of capital management. All the options are still on the table, and the company will look at if it’s optimal to issue a dividend or if it’s optimal to do ­another buyback.”

Qantas last paid a dividend to shareholders in 2009. Any consideration of a dividend would also depend on the company’s level of franking credits, given its tax losses in previous years.

“The dividend situation relates also to our position on franking credits,” Joyce said.

“We have the ability to issue around a nine-cent dividend with the franking credits we have. Given the cumulative tax losses, particularly going back a few years, we are rapidly going through them because the company is making good profits.

“We will be back in a position of paying cash tax with the corporations tax — by the way, we pay a hell of a lot of other taxes which I keep on emphasising — and that will allow us the consideration about paying a sustainable franked dividend going forward as well.”

Loading comments for Qantas completes $500 million share buyback, eyes further shareholder returns...


TAG Aviation Asia Wins Best Management Company Award at the AsBAA Icons of Aviation Award Ceremony 2018

TAG Aviation Asia has once again been recognised bythe Asian Business Aviation Community (AsBAA) as ‘Best Aircraft Management Company’ for the Greater Asia and Asia Pacific Region. The...

ATR and Air New Zealand explore the future of a regional aviation ecosystem including hybrid aircraft

ATR and Air New Zealand have signed an agreement to explore the role of new propulsion technologies, could play in the future of the regional aircraft ecosystem. Under the agreement the partners wi...

Qatar Airways Becomes First Airline to Launch GlobalBeacon

Qatar Airways is proud to be the launch customer of GlobalBeacon, a key product solution created by FlightAware®and Aireon that provides the airline with global, real-time flight tracking. In S...

New AZAL new campaign on flights from Baku to Beijing and return flight

Azerbaijan  Airlines (AZAL) announces a new campaign on route from Baku to Beijing and return flight. For flights from December 1 to March 26, 2019, the full cost of the ticket in economy...