Fitch: Rational Behaviour to Stabilise Australian Airlines in 2016

(The following statement was released by the rating agency)Link to Fitch Ratings' Report: 2016 Outlook: Australian Airlineshttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874155SYDNEY, November 29 (Fitch) Fitch Ratings' 2016 outlook for the Australian airlines sector is stable, based on a return to rational competitive behaviour and a focus on balance-sheet strength. Fitch expects Australian airlines' earnings to rise, driven mainly by improved operational efficiency in domestic operations and lower fuel prices. The agency believes better domestic market conditions will continue as the airlines return to rational competitive behaviour and capacity discipline. We expect this to result in improvements in domestic yield and load factors. We also expect better results from the international operations as the airlines address operational inefficiencies and structural changes in the market.Fitch believes Australian airlines will consolidate their improved financial position in 2016, benefitting from the benign competition, a structural decline in fuel prices, and the improvement in profitability. This is supported by a continued focus on leverage and return on invested capital targets.The full report "2016 Outlook: Australian Airlines: Return to Rational Competitive Behaviour to Consolidate Sector Improvement", is available at www.fitchratings.com, or by clicking on the link in this media release.Contact: Kelly Amato, CFAAssociate Director+61 2 8256 0348Fitch Australia Pty LtdLevel 15, 77 King Street, Sydney, NSW, 2000Vicky MelbourneSenior Director+61 2 8256 0325Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com; Leni Vu, Sydney, Tel: +61 2 8256 0304, Email: leni.vu@fitchratings.com; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com.Additional information is available on www.fitchratings.comALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. 337123) which authorises it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.