The Qantas (ASX:QAN) share price has taken off today

Qantas is expecting a boost to domestic holiday and business travel and has increased its fleet.

| More on:
A pilot stands in an empty passenger cabin smiling with his arms crossed looking excited

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Qantas Airways Limited (ASX: QAN) share price is lifting, despite no news being released by the airline today.

The Qantas share price was trading at $4.85, up 2.97% at the market close today.

Yesterday, the airline announced it will be introducing new routes through an expanded deal with Alliance Air.

Let's take a closer look at the latest news from Qantas.

Qantas readying for domestic take-off

According to Qantas, it's getting ready for an expected boost to domestic travel by expanding its 3-year agreement with Alliance Air.

The expansion will see Qantas use 4 more 94-seat E190 jets for its regional QantasLink services. The new planes will bring the total number of aircraft used by QantasLink up to 18.

The new E190 jets mean Qantas can use its Boeing (NYSE: BA) 737 aircrafts to create new routes and increase flight frequency.

E190 jets can complete 5-hour trips, which Qantas says is perfect for linking regional centres with smaller capital cities.

The first route to see more travellers seated on E190 jets will be between Adelaide and Canberra. The small capital cities will see the frequency of flights between them double to 18 a week after the new planes' introduction.

Qantas says more routes and services resulting from the new agreement will be announced shortly.

Additionally, Jetstar has loaned 3 Airbus A320 aircraft from Jetstar Asia in Singapore for use in Australia.

According to Qantas, the increased demand for Australian domestic services coincides with decreased demand in Asian international services.

The Singaporean planes will join 6 that Jetstar has already borrowed from Jetstar Japan.

Jetstar can also use up to 5 Boeing 787-8 planes that normally fly internationally in its domestic operations.

Commentary from management

Qantas CEO Alan Joyce commented on the airline's latest news:

Since travel demand started to recover about a year ago, our strategy has been to think creatively about how we use our fleet to add capacity back in, generate revenue and get more of our people back to work…

Expanding our long-standing relationship with Alliance gives us access to a different aircraft type without spending any capital…

Victoria represents about 20 per cent of our total network and with restrictions in Melbourne easing and as borders start to reopen, we expect to see a quick rebound in travel demand just as we have in other cities when lockdowns ended.

Qantas share price snapshot

This year has been tough on the Qantas share price, though it's not far from the ASX green.

Qantas shares have fallen 0.81% in 2021 but are up 11.61% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

A businessman stacks building blocks.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares hit a new record high today.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Auckland Airport, Australian Ethical, Breville, and Clarity shares are charging higher

These shares are having a better day than most on Thursday. But why?

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a day to forget this hump day.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Droneshield, Meteoric Resources, Mount Gibson, and Tyro shares are charging higher

These shares are having a good time on hump day. But why?

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was back in the black this Tuesday.

Read more »