{"id":59484,"date":"2014-08-28T22:27:58","date_gmt":"2014-08-29T02:27:58","guid":{"rendered":"http:\/\/countingpips.com\/?p=59484"},"modified":"2014-08-28T22:27:58","modified_gmt":"2014-08-29T02:27:58","slug":"why-did-the-qantas-share-price-rise-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/why-did-the-qantas-share-price-rise-today\/","title":{"rendered":"Why did the Qantas Share Price Rise Today?"},"content":{"rendered":"
August 28, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What Happened to the Qantas Share Price?<\/h2>\n

Qantas Airways Limited [ASX: QAN]<\/strong> is an Australian based domestic and international airline with two brands, Qantas and Jetstar. <\/p>\n

The Qantas share price closed 6.95% higher on Thursday. <\/p>\n

Why Did This Happen to the Qantas Share Price?<\/h2>\n

The financial end of year results weren\u2019t good. The statutory loss was $2.8 billion and the underlying before tax loss was $646 million \u2013 less than the anticipated $750 million from several analyst. <\/p>\n

The statutory loss was much higher than expected because of the $2.6 billion write down from the cost of its fleet. <\/p>\n

A statutory loss is everything added and deducted from revenue. The underlying before tax loss excludes the really bad stuff, such as write-downs. <\/p>

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However, the announcement that Qantas was going to separate its loss making international business from the domestic business saw the share price rally 8.9% on the open today. <\/p>\n

What Now For Qantas?<\/h2>\n

Only once in the past five financial years has this stock turned a profit. That was in 2013 with a profit of $1 million.<\/p>\n

Alan Joye, CEO of Qantas says these financial results show the bad year is behind the company. <\/p>\n

The share price surge means either investors believe or Joye or think all the bad news has been priced in. <\/p>\n

Twice this year the Qantas share price<\/strong> has reached $1.40 but it has struggled to trade much higher. <\/p>\n

Joye was quick to point out that, while the company estimates a net profit for the first half of 2015, there are factors outside his control that will affect the airlines bottom line. Like the exchange rate and patronage. <\/p>\n

Airlines in general are a tricky business to invest in. Qantas\u2019 rally is likely to be short lived. A whiff of bad news could see the share price fall from here. <\/p>\n

Shae Smith+<\/a>
\nEditor, Money Weekend<\/em><\/strong> <\/p>\n

Join Money Morning on Google+ <\/span><\/a><\/strong><\/p>\n

The post Why did the Qantas Share Price Rise Today?<\/a> appeared first on Stock Market News, Finance and Investments | Money Morning Australia<\/a>.<\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au 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 Qantas share price closed 6.95% higher on Thursday. Why Did This Happen to the Qantas Share Price? The financial end of year results weren\u2019t good. The […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-59484","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=59484"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59484\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=59484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=59484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=59484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}