What Happened to the Qantas 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 1.41% higher on Wednesday.
Why Did This Happen to QAN Shares?
The airline has been in an uptrend since it announced a massive $2.48 billion loss. Yes. The stock has rallied 10% since the company announced it traded in the red. Again. Qantas has now posted a net loss for four of the past five financial years.
However, since Friday last week the AUD/USD has fallen 1.6% to around 0.8819. The airline has said the falling Aussie does push up fuel prices. But rivals dropping out of Australian routes outweigh this negative effect.
Qantas has said the ideal Aussie exchange rate for the business is around 80 US cents. For this to happen the currency needs to fall roughly 10% from here.
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What Now for Qantas Airways Limited?
Sigh. The unending faith in Qantas truly amazes me.
Just because Qantas is cheap doesn’t mean the stock is a good buy.
Sadly, I didn’t write this gem of analysis. I found it in The Age. It’s practically a public service announcement:
‘Too many investors place Qantas in the blue chip category along with the likes of Woolies and Telstra because they falsely associate brand strength with business quality.
‘So if the…price increase since the recent loss announcement isn’t a financial expression of misplaced patriotism, what is it?
Shae Smith+
Editor, Money Weekend
The post Why the Qantas Share Price Rose Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
