Friday, 7 August 2015

Will lower fares make Malaysia Airlines do better?

WHEN the crunch comes, listed companies in the United States are quick to issue profit warnings. This alerts investors that profit forecasts won’t be met. This guidance provides them the flexibility to either stay invested in a stock or dump it.

It somewhat saves the chief executive officer and share price from a bashing when the results are announced.

While guidance is a good thing, the timing needs to be right too.

This week, Malaysia Airlines (MAS) CEO Christoph Mueller said in Sydney that the social media hype over the missing Flight MH370 was hurting MAS’ ticket sales.

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