QAN -6.8%: the flying kangaroo was brought back to earth today after a tough reaction to their 1H results. Underlying Profit Before Tax (PBT) of $1,428m was near the top end of the $1.35-1.45b guidance range, while EBITDA was in line and they even announced a $500m buyback. The issue came with guidance as the company failed to provide PBT targets for the second half and lifted capex guidance for the full year by 20% to $2.6-2.7b as well as bumping up medium-term fleet capex by $2b. Other guidance looks largely in line, however, the market will also want to see some better cost control after non-fuel costs came in above expectations for the 1H.
MM is neutral QAN ~$6
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