Goyder going wouldn’t lift negative overhang: Qantas analysts

afr.com:

Qantas chairman Richard Goyder standing aside would not fix the airline’s issues and investors should welcome new chief executive Vanessa Hudson’s focus on customers, analysts say, with 185 new planes set to be delivered over the next decade.

Morningstar analyst Angus Hewitt said Ms Hudson’s declaration of a return to customer focus was welcomed after the carrier cut back too much spending over recent years.

Goyder and new Qantas chief Vanessa Hudson faced a hostile committee chaired by Coalition transport spokesperson Bridget McKenzie. Alex Ellinghausen

Mr Hewitt said Qantas shares are “probably a bit cheap now” but doubted that Mr Goyder leaving would make “a big difference”.

“I don’t think that negative perception would change if they got rid of their chairman. I think what needs to change is that balance between service and cost, that’s where their customers are focused,” he said.

Ms Hudson’s pledge to spend more on customers and absorb higher fuel costs – rather than pass them through as higher fares – would help turn the airline around, analysts said.

“They had to really tighten everything through the pandemic. But arguably they have underinvested for a while. A lot of the negativity really boils down to two points: cost and service,” Mr Hewitt said.

“It has been a pretty poor experience despite the premium people are paying. That underpins our view that this is probably as good as it gets for Qantas.”

Analysts have revised up their capital expenditure bills and point out that investment in new aircraft and customer service, including an additional $80 million flagged by Ms Hudson two weeks ago, takes the total bill to $230 million.

JPMorgan analyst Anthony Longo said the revised spending, alongside higher fuel