What happened to the Qantas share price today?

The ACCC released its outcome for its three-year long investigation…

| More on:
Plane taking off from Sydney airport with CBD in background

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

Key points

  • Qantas shares edge 0.19% higher to finish out Tuesday's trading session at $5.17 
  • The ACCC advised it will take no action at this time regarding Qantas' 19.9% acquisition of Alliance Aviation 
  • Concerns were originally raised about the flying kangaroo's growing monopoly in the domestic travel market 

The Qantas Airways Limited (ASX: QAN) share price edged higher following an update from the Australian Competition & Commission (ACCC).

At Tuesday's market close, Qantas shares ended the day up 0.19% to $5.17.

Let's take a closer look at what was released to the ASX today.

ACCC proposes not to take enforcement action over Qantas acquisition

Before market open, Brisbane-based airliner, Alliance Aviation Services Ltd (ASX: AQZ) released a statement from the ACCC regarding Qantas' 19.9% acquisition of the company.

Alliance advised that the ACCC wrote a letter stating that it will not take any further enforcement action in relation to the takeover.

Qantas secured the minority stake in Alliance during 2020 for roughly US$45 million.

At the time, alarm bells rang as the competition watchdog signalled its concerns about Qantas' monopoly in the domestic travel market.

While no action has been taken since the investigation began 3 years ago, this could change.

The ACCC said that it will continue to monitor Qantas's conduct in the industry regarding the acquisition, and action could happen at a later date.

Nonetheless, the news appears to not have bothered investors, with the Qantas share price travelling slightly higher.

On the other hand, the Alliance Aviation share price lifted 1.87% to $3.82 apiece.

Qantas share price snapshot

Since the start of 2022, Qantas shares have travelled on a rollercoaster, posting a gain of around 3%.

However, when looking at a larger time frame such as the last 12 months, its shares are relatively flat.

Qantas commands a market capitalisation of roughly $9.74 billion, making it the 60th largest company on the ASX.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Alliance Aviation Services Ltd. The Motley Fool Australia owns and has recommended Alliance Aviation Services 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

airline crew stands on tarmac under aircraft
Travel Shares

Qantas shares lower on $120m profit hit

The airline operator is being made to pay for decisions it took during the pandemic.

Read more »

Man waiting for his flight and looking at his phone.
Travel Shares

One ASX 200 stock down 50% since July this fund just bought

The fund managers saw value in the ASX 200 stock following a 50% share price plunge.

Read more »

A smiling boy holds a toy plane aloft while a girl watches on from a car near an airport runway.
Travel Shares

Would Warren Buffett buy Qantas shares in December 2024?

Is this airline stock an appealing investment today?

Read more »

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

Buying Qantas shares? You'll need to know this

Qantas shares have been soaring higher in 2024.

Read more »

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

Qantas share price hits turbulence as engineers down tools

Qantas’ engineers are displeased with the results of pay negotiations.

Read more »

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

Will the Qantas share price take off again in 2025?

The Flying Kangaroo has smashed the market this year. Could it do the same in 2025?

Read more »

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

Why the soaring Qantas share price could be 'difficult to sustain'

The Qantas share price has been a stellar performer in 2024, up 68.7% since 2 January.

Read more »

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

Why the Qantas share price can keep flying to new highs

Qantas shares' new record highs are forecast to be broken in 2025 by this top broker.

Read more »