What Happened to the Share Price?
Qantas Airways Limited [ASX:QAN] is an Australian based domestic and international airline with two brands, Qantas and Jetstar.
The share price closed 3.64% higher on Friday.
Why Did This Happen to Qantas Shares?
CEO Alan Joyce told the market today that positive results are just around the corner for the airline. Its guidance for the first half of the financial year suggests Qantas will have a pre-tax profit.
In addition, domestic market capacity growth for the first half has been forecast at 0%. This is down from the 1% guidance in August.
What Now for Qantas?
A contributor to the flying kangaroo’s financial woes is its insistence on maintaining 65% market share over Virgin Australia. Doing this, Qantas often end up with a bunch of empty seats. Savvy consumers also are seeking the cheapest deal, putting further pressure on Qantas margins.
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It seems shareholders are drinking the Kool-Aid today.
With the stock trading up, it’s as if many investors are hoping to buy low and sell high after good news next financial year.
Don’t rush into buying this stock. It has disappointed the market for the past five years. Remember, just because a stock is cheap doesn’t make it buy!
Shae Smith+
Editor, Money Weekend
The post Why Did The Qantas Share Price Fall Today? appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
