What Happened to the Qantas Share Price?
Shares of Qantas Ltd [ASX:QAN] gained nearly 5% Friday, after the stock continued to rebound from recent lows.
Why did this happen to the QAN Share Price?
On Thursday broking firm JPMorgan raised their price target on Qantas to $1.47. This was a 20% increase on the previous price target of $1.23. Reports of potential changes to the curfew at Sydney Airport also helped boost the share price.
What now for Qantas?
It’s barely six months since some analysts and investors feared that Qantas could go bust due to the high cost nature of the airline business. This fear drove the Qantas share price to below $1.
Since then the stock has rallied more than 30%, and while the airline business is highly competitive with high fixed costs, there’s no doubt that Qantas still has a strong position in the domestic airline market.
Furthermore, news today that the New South Wales government was looking at lifting the curfew and flight caps at Sydney Airport also had a positive effect. Without the curfew and flight caps Qantas could increase capacity on some of the airline’s most popular routes.
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Historically airlines have been bad investments, but with the recent rally Qantas has been one of the Australian share market’s best performing stocks.
Cheers,
Kris+
