Qantas Airways Ltd’s (ASX:QAN) latest cost cuts are excessive, unnecessary and could result in lower customer numbers, that is according to Macquarie Research analysts.
Earlier this week Australia’s largest airline again hiked its fuel surcharge for the fifth time this year.
Macquarie's analysts Russell Shaw and Sam Thornton have told Fairfax that the latest move is probably unrealistic and could backfire on the airline, claiming that demand is not that strong.
According to the report, the surging Australian dollar, that climbed to over 107 US cents this morning, is a cushion against the rising price of fuel and operating costs.
The analysts believe that current exchange rates are likely benefiting Qantas more than investors realise.
For the half year ended on 31 December 2010 Qantas reported a net profit of $239 million.
