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Highlights
- Qantas’ shares were spotted trading in the red, down 0.565% as of 2:48 PM AEDT.
- The company hasn’t shared any price-sensitive updates lately.
- Meanwhile, ASX 200 Consumer Staples sector was in the green, up 78.5 points.
The share price of Australian airline Qantas Airways Limited (ASX:QAN) has taken a toll in today’s (15 December) trading session. Qantas’ shares were heading south on the ASX with a loss of 0.565%, trading at AU$6.155 apiece as of 2:48 PM AEDT.
Even though Qantas’ shares performed negatively on the ASX today, the S&P/ASX 200 Consumer Staples sector was in the green with a gain of 78.5 points, totalling 12,775.2 points around the same time.
The shares of Qantas have generally performed well during the past year. The share price of Qantas has climbed by 0.16% in the past five trading sessions and by 5.66% over the past month, in contrast to today's drop. In addition, the value of Qantas' shares has increased 19.61% year-to-date (YTD), 36.28% during the last six months, and 26.49% in a year.
What’s new at Qantas?
Last month on 23 November 2022, Qantas announced that the company is expecting a profit upgrade for the first half of FY23 due to continued strength in the travel demand.
Qantas’ official market update report stated that the group now expects an underlying profit before tax of between AU$1.35 billion to AU$1.45 billion. According to Qantas, the profit range provided in early October 2022 will grow by AU$150 million due to this profit upgrade.
Additionally, fuel expenses are projected to increase dramatically in FY23 compared to FY19, reaching almost AU$5 billion. In spite of the fact that international capacity is currently about 30% below pre-COVID levels, the group will set a new high if this occurs.
The company also emphasised that customers continue to prioritise travel above other areas of spending, which is expected to increase domestic leisure demand and boost the Australian tourism industry.
Qantas' operational performance continued to improve over the first half of FY23. By the end of 2022, the group's net debt is anticipated to drop between AU$2.3 billion and AU$2.5 billion. The company says this to be almost AU$900 million better than the most recent update anticipated, largely due to customers booking flights on Qantas, Jetstar, and partner airlines into the second half and beyond.
Apart from the 1H FY23 market update, Qantas also announced an AU$400 million on-market share buyback programme in August 2022. About 76% of buybacks have been completed at an average of AU$5.66 per Qantas share.
