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- In an environment of rising bond yields, Qantas benefits from its negative working capital position.
- The company is able to tap unique funding sources, such as up-front payments by banks for its Frequent Flyer program.
- Qantas’ negative working capital position is by far the highest among ASX200 companies.
Qantas issued guidance this morning for a record full-year profit of between $ 1.55 billion and $ 1.60 billion, despite a sharp increase in oil prices.
The result is another step forward in Qantas’ operational turnaround, but analysis from Credit Suisse (CS) highlights another unique factor in its business model — one that could make Qantas shares more attractive in an environment of rising bond yields.See the rest of the story at Business Insider
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