AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Qantas had another day of booking losses, slipping further 4% down today
- The fall in price is backed by the scrapping of flights between Perth and Alice Springs
- Another pain in the neck is luggage lag
Extending losses from the last five trade sessions on ASX, Qantas Airways Limited's (ASX:QAN) share price slipped further 4% today. QAN shares last exchanged hands at AU$4.52 each. The airline operator’s share price is down around 16.9% in a month. The loss is much more than the broader Australian market index, ASX 200 (XJO), which is down 7.33% in the last thirty days.
Qantas share price hits a six-month low
Today QAN share price recorded a new six-monthly low, ending just about 30 cents per share above its yearly low. The share price fall was much more than that of its peers. Flight Centre Travel Group Ltd (ASX:FLT) share price was lower by 2.18% and Webjet Limited (ASX:WEB) by merely 0.96%.
Lacking any new ASX announcements, the dip in Qantas share price today seems influenced by not-so-good news of flight route scrapping between Perth and Alice Springs. As reported in an ABC news story, Qantas was to suspend direct flights from Alice Springs to Perth from July 1. This route, as believed by tourism sector experts, was a good connection to remote Australia. As per the ABC news report, the route was commonly used for corporate trips. As a result, the cancellation of the route will particularly affect Central Australian organisations and their work over the border. However, the Airline reportedly took the decision due to a low passenger number to meet its cost.
Staff shortages Qantas
Another news was quoting Qantas, a bigger worry among travellers stated that the company was facing staff shortages. It apparently relied on office workers to fill in as baggage carriers to keep the business running during the busy winter holiday travel season. The staff shortage has reportedly already started affecting Qantas customers, who are forced to begin their trip without bags.
Qantas faced a similar issue in the past, where the airline company took help from around 200 of its head office staff to tackle the Easter holiday travel rush. It is preparing to do the same during the July school holidays season.
Media reports also discuss a well-documented ground labour shortage across the Australian economy. The outcome results from baggage systems maintained by the airports and the continuation of Covid-related staff absences.
Bottom line
Qantas' share price appears to be on a free fall. Both ASX releases and news articles are influencing price movements. However, before investing or withdrawing funds, Investors might want to look at the financial and operational dynamics too.
More from ASX- Core Lithium (ASX:CXO) shares grabbed investors’ attention today, here’s why
