Company Interview / Market Update | Airlines, Virgin Australia, Collins Foods, Treasury Wine Estates

Australian airlines have been affected by the wart in the Middle-East ... It came after Iran launched a strike against a US base in Qatar which prompted Qatar to close its airspace. US President Donald Trump has since announced a ceasefire this morning, yet to be confirmed by Israel and Iran. In the meantime, airlines including Qantas (ASX: QAN) have had flights diverted or canceled. Virgin Australia, which re-lists on the ASX today, has also been affected as it operates flights in partnership with Qatar Airways. At least Two Virgin and two Qantas flights flights were diverted to other destinations.Let's see how the travel stocks are reacting...

Virgin Australia (ASX: VGN) is relisting on the ASX today after a $685 million IPO. Shares were offered at $2.90 each -- valuing the airline at $2.32 billion. Virgin was delisted in 2020, after Bain Capital rescued it from going into administration. Bain will now see its stake reduced to 39.4% from about 70%, while Qatar Airways, which bought into Virgin, will retain 23%. Lochlan Halloway, Equity Market Strategist at Morningstar, says the $2.90 offer price is too high, with the broker having a $1.90 fair value estimate. Morningstar says the offer price reflects market conditions that are unusually favourable — and unlikely to last.

KFC franchisee Collins Foods (ASX: CKF) is forecasting higher underlying profit in FY26....and says its Australian business is benefitting from deflation across some product inputs. Collins Foods posted a 2% rise in FY revenue to a record $1.52 billion. However statutory profit fell 88% in the year to $8.8 million, which included more than $40 million in restaurant impairment charges and a $3.2 million provision for potential wage underpayments. Collins Food says its second half markedly outperformed the first and it's seeing solid sales growth in the first 8 weeks of its FY26 year. However, it warned it expects pressure on European poultry costs to continue.

Treasury Wine Estate (ASX: TWE) has provided an investor update with the company expecting FY25 EBITS to be approximately $770m up 17% on the PCP. However, it has cut is growth projections for its flagship Penfolds brand for 2025-26. It said it's having to invest more in sales and marketing behind the brand, even though sales were still strong in China and is expecting low-to-mid single digit earnings growth for Penfolds in 2025-26, down from a previous forecast of “approximately 15 per cent”. The company said it plans an on-market buyback of up to 5% of its stocks, reflecting its belief that the shares are underpriced. Treasury Wines added that it will announce the buyback in August alongside its fiscal 2025 results.