The Qantas Airways Limited (ASX: QAN) share price is just one of the high-profile shares investors will be keeping a close eye on this reporting season.
As reported by this morning's Australian Financial Review (AFR), Citi analysts are expecting the airliner to report a loss of $1.2 billion for the 12 months to June 30. While the devastating impact the pandemic has had on Qantas is widely known, investors will be eyeing the airliner's results carefully for an insight into just how deep the damage runs.
Here are a few other reasons all eyes will be on the Qantas share price this profit season.
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Why will investors be watching the Qantas share price?
Going into this reporting season, Australia's domestic economy has been rocked by widespread lockdowns, which have been particularly brutal for the travel sector.
As a result, many investors will not only be looking at how companies have performed but also what the future holds for them.
Despite Qantas attempting to build optimism over the past 12 months, the Delta outbreak has resulted in further pain for Australia's travel market.
As a result of the latest round of lockdowns, Qantas made the decision last week to stand down 2,500 of its workers.
So, as also posited by the AFR, investors will be interested to gain an understanding of how extended lockdowns might impact the airliner's future profits, with Citi estimating that "Sydney accounts for between 35 per cent and 40 per cent of Australia's aviation activity".
Despite the loss Citi is tipping for the 12 months to June 30 for Qantas, the AFR reports the broker has forecast Qantas to generate a profit of around $213 million in 2021-2022.
As a result, investors will be paying close attention to how possible extended lockdowns might hamper the airliner's ability to deliver on this.
Foolish takeaway
The last 3 months have not been kind to Qantas shares, which have fallen by almost 3% since 10 May. The Qantas share price has continued to struggle amid a plethora of COVID-19 induced travel restrictions and lockdowns.
The seriousness of the situation was reinforced by the company's latest decision to lay off staff even as one of its rivals questioned the timing of the action.
The stand-downs followed a drastic reduction in Qantas' domestic capacity, with more than 9,000 flights cancelled in June.
Despite an initial recovery earlier this year, the Qantas share price is currently trading almost 7% lower since the start of 2021.
Qantas is scheduled to release its results on Thursday 26 August.
