Does Qantas really want investors to follow it, or has it delusions of becoming a "growth" stock by not paying regular dividends and trying to finance its ambitious expansion program?
The question arises after Friday’s annual meeting of the airline in Sydney.
Shareholders were left with the very explicit message not to expect regular payments, not that there have been any for a while.
Chairman Leigh Clifford told the meeting that future payments would be assessed against the airline’s ongoing performance and capital requirements.
"The Board believes in paying a dividend to shareholders whenever possible. This year careful consideration was given to this matter.
"Over the coming period the Qantas Group will need to service its very high capital requirements, including in fleet renewal, and retaining a high credit rating remains a priority.
"With this in mind, the Board decided not to pay an interim or final dividend in 2009/2010 and future dividends will need to be assessed against ongoing earnings performance and capital requirements, Mr Clifford told the meeting.
Qantas has 157 new jets on order, more than half its total fleet.
Mr Clifford said, "Globally, we are seeing a recovery and that is flowing through to our international business.
"But it is early days and it is patchy. There remain challenges for two of our biggest markets, the US and the UK."
International business travel had improved significantly, despite global economic uncertainty and the financial impact of the volcanic ash disruptions, he said.
Mr Clifford said within Australia the business market was returning, while the leisure market has been affected by significant capacity increases.
The positive impact of the strong Australian dollar on US dollar costs was partially offset by falls in the value of foreign currency revenues and recent fuel price increases, he said.
"A strong Australian dollar also has an impact on inbound and outbound travel patterns," he said.
Qantas chief executive Alan Joyce said the world’s largest aviation market, the Asia Pacific, offered significant opportunities.
"Looking ahead, there are many challenges, but also one unmistakeable opportunity.
"By 2013, (the) International Air Transport Association (IATA) predicts that Asia-Pacific’s market share will grow to almost one-third of total global passenger traffic.
"Significant opportunities will be unleashed, and the Qantas Group will be there to participate."
"Capitalising on Asian economic growth is clearly a long-term project, but the Qantas Group is exceptionally well-placed to do so," he said.
Shares in Qantas fell 4c, or more than 1.2%, to $2.84.
