Why the Qantas (ASX:QAN) share price is leaping 5% today

Qantas CEO Alan Joyce says demand for travel is surging.

| 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

The Qantas Airways Limited (ASX: QAN) share price is up 5.3% in early afternoon trade.

Qantas shares closed yesterday at $4.66 and are currently trading for $4.91.

Other S&P/ASX 200 Index (ASX: XJO) travel shares are also helping to boost the index today.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is up 7%; and Webjet Limited (ASX: WEB) shares have gained 4.7%.

The Qantas share price is joining a wider global equities rally that saw the US S&P 500 Index gain 2.6% and Germany's DAX Index charge 7.9% higher yesterday (overnight Aussie time).

And with travel demand surging, Qantas CEO, Alan Joyce is optimistic about the year ahead.

A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.

Image source: Getty Images

Travel demand is on the up

Surging travel demand could offer more tailwinds to the Qantas share price.

Speaking at The Australian Financial Review Business Summit on Tuesday, Joyce highlighted the difficult year Qantas underwent in 2021.

With COVID-19 hobbling international and domestic travel throughout much of the year, Joyce said Qantas only had 18% of its total operations running. But now the airline is seeing "a surge in demand".

Joyce said (quoted by the AFR): "Domestic leisure is up over 100%. With Jetstar for a number of weeks now we're seeing this really strong demand coming through. We plan to get Jetstar to 120% by the middle of the year."

As for international markets, Joyce said:

What we're seeing internationally is when the borders are opening up, we're getting a massive bill. London is now ahead of the pre-COVID levels. It's been open since November. We've got more demand in London than we had before COVID. In LA more demand than before COVID.

The Qantas boss is thrilled that all state borders have finally reopened, with Western Australia the last state to rejoin the nation.

"The reunification of Australia – who thought that would be a thing? And it's fantastic. That's actually what has happened," he said.

Qantas share price snapshot

Despite today's bounce, the Qantas share price remains down 4.8% since the opening bell on 4 January. By comparison, the ASX 200 is down 6.1% year to date.

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 recommended Flight Centre Travel Group Limited and Webjet Ltd. 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

Happy young couple doing road trip in tropical city.
Travel Shares

Why is the Flight Centre share price soaring 9% on Wednesday?

Investors are piling into Flight Centre shares on Wednesday. But why?

Read more »

two business people shake hands through the glass wall of a business office with a board table and laptop computer in view between them.
Travel Shares

Flight Centre Travel Group sells Pedal Group stake for $61.7 million

Flight Centre Travel Group sells its Pedal Group stake for $61.7 million, with proceeds supporting growth in its global travel…

Read more »

Man sitting in a plane seat works on his laptop.
Broker Notes

Down 34% in 2026, are Virgin Australia shares a good buy today?

A leading analyst delivers his outlook for Virgin Australia’s beaten-down shares.

Read more »

Pilot on the phone looking distraught.
Travel Shares

Why Qantas shares nosedived 16% in March

Investors evacuated their Qantas shareholdings in March. But why?

Read more »

Happy woman trying to close suitcase.
Travel Shares

Webjet share price lifting off on CEO bombshell

Webjet shares are charging higher following unexpected leadership news.

Read more »

A female cabin crew member on a place looks like she has a headache.
Travel Shares

Why Qantas shares could be flying into turbulence

Leading experts warn Qantas shares could face a big earnings decline.

Read more »

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

Virgin Australia shares fly 13% higher: Is this the start of the rebound we've all been waiting for?

Here's how far analysts think the airline's shares could go.

Read more »

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand.
Travel Shares

Qantas stock is down 17.7% in a month. Time to buy?

Qantas is back to April prices.

Read more »