The Qantas (ASX:QAN) share price is falling today

Qantas hasn't released any news to the ASX today, but it has announced another benefit from its newly expanded agreement with Alliance Airlines

| More on:

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

Shares in Qantas Airways Limited (ASX: QAN) are nose-diving today despite the company not releasing any price-sensitive news. At the time of writing, the Qantas share price is $4.67 – 3.81% less than its previous closing price.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 1.77% today.

While Qantas hasn't released any news to the ASX today, it has announced yet another benefit from its newly expanded agreement with Alliance Airlines. Let's take a look.

Darwin's delight

Qantas has launched a new service allowing almost 1000 passengers per week to travel directly between Canberra and Darwin.

The service will take advantage of the E190 jets provided to QantasLink through Qantas' deal with Alliance Airlines. The expanded agreement has seen QantasLink making use of 4 more aircraft that can each seat 94 passengers.

QantasLink is now flying return between Canberra and Darwin up to 5 times each week.

According to Qantas, it's the first time in 9 years that the capitals will be directly linked by air.

The airline introduced this latest boost to Darwin services in response to strong demand.

Qantas is operating more frequent flights and flying larger aircraft to Darwin from other Australian capital cities, particularly for the tropical city's peak tourism season which runs from July to September.

According to Qantas, it's increased its passenger capacity for flights between Melbourne to Darwin by 120% compared to what it was before COVID-19 hit Australia. Return flights from Sydney, Perth, and Adelaide to Darwin have also increased their capacities by 60% since the pandemic hit.

Commentary from management

QantasLink's CEO John Gissing commented on the new routes, saying:

With no other airline currently operating on the route, the direct flights will save business and leisure travellers more than two hours travel time on a round trip instead of flying via other capital cities.

More visitors to Darwin will be great for the Northern Territory economy with flow on benefits for local businesses in their recovery from the impact of COVID.

These flights also provide travellers from regional New South Wales with a convenient gateway to the Northern Territory and they're launching just in time for a holiday during the colder winter months.

Qantas share price snapshot

2021 hasn't been a great year so far for the Qantas share price.

Currently, shares in Qantas have fallen by 4.89% year to date. However, they have gained 11.46% since this time last year.

The airline has a market capitalisation of around $9.5 billion, with approximately 1.8 billion shares outstanding.

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 Travel Shares

Smiling woman looking through a plane window.
Travel Shares

Virgin Australia returning to the ASX with $685m IPO

Demand for domestic travel draws the airline back to the stock market.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

Here's the earnings forecast out to 2029 for Qantas shares

Can the airline generate even stronger earnings? Here’s what experts think.

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

Qantas shares have doubled in less than 2 years. Are they a buy, hold or sell?

What do analysts think of the Flying Kangaroo?

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Why the Qantas share price soared 20% in May to new all-time highs

With another stellar month in May, Qantas shares are up more than 79% in a year.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

What does Macquarie think Web Travel Group shares are worth?

Is the broker bullish or bearish? Let's find out.

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Web Travel share price rockets 13% on market leading full-year growth

Investors are sending Web Travel shares soaring today. Here’s why.

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

$10,000 invested in Qantas shares 5 years ago is now worth

Let's see what happened if you were brave and bought the Flying Kangaroo's shares in 2020.

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Why have Qantas shares outperformed Flight Centre shares by more than 100% over the past 12 months?

The two share prices are travelling in opposite directions.

Read more »