...Sector Outlook Stable: Fitch Ratings has initiated a stable outlook on Australian airlines, with more rational competitive behaviour likely following a decade of intense competition between Qantas Airways Limited and Virgin Australia Holdings Ltd. We expect this to be the main boost to profitability. We also believe both airlines will consolidate their improved financial position, as benign competition coincides with a structural decline in fuel prices and the airlines' commitment to improving operational efficiency. Improved Domestic Market Conditions: Fitch expects the return to rational competitive behaviour to continue as the airlines focus on operational efficiency and their financial position. This view is supported by a more disciplined capital management approach. We expect improved yields and load factors in 2016, leading to stronger profitability. Benefit from Lower Fuel Prices: We see an ongoing benefit from the low oil prices, such that earnings will exhibit less profit volatility....
