The Qantas Airways Limited (ASX: QAN) share price currently sits around $5.37 per share, its highest level in more than nine years.
The airline's share price has bounced from a low of $2.58 around 12 months ago for a number of reasons. The shares are up 79% since June 2016.
Lower oil prices, rising passenger numbers, cost-cutting and improved profitability, stable and rational competition from the likes of Virgin Australia Holdings Ltd (ASX: VAH) and rising airfares have all helped the shares hit record prices recently.
Broker Citi recently reiterated its buy rating on the airline, increasing their price target to a whopping $7.09. Citi believes that the airline's share price is undergoing a rerating that is long overdue.
It's not the only airline seeing improved performance though. Regional Express Holdings Ltd (ASX: REX) and Air New Zealand (ASX: AIZ) both have upgraded their guidance for their full year 2017 (FY2017) results.
Qantas expects to report an underlying profit before tax for FY2017 of more than $1.35 billion, which continues the turnaround under CEO Alan Joyce over the past few years.
Foolish takeaway
The results suggest that airlines may have shed their poor reputation for losing shareholders funds, but investors still need to be wary given the external factors that can influence the performance of airlines.
