The Qantas Airways Limited (ASX: QAN) share price is on watch today following several key updates from the airline.
Qantas shares closed on Friday at $5.60 apiece.
What key updates did Qantas announce?
The Qantas share price is in the spotlight on Monday after the Aussie airline reported that domestic travel numbers were returning to levels not seen since the onset of the pandemic faster than expected. Both leisure and business travel demand was said to be rebounding strongly.
The airline also said there is strong demand for international flights, but this segment remains hampered by travel restrictions persisting in some nations.
On the financial front, Qantas reported that its net debt levels had fallen to $4.5 billion as of the end of April, which brought net debt back to pre-pandemic levels.
Looking ahead to the second half of 2022, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2H22 are forecast to come in at $450 million to $550 million. This compares to an underlying EBITDA loss of $245 million in the first half.
In a separate announcement, Qantas revealed that the board has given the go ahead for 'Project Sunrise', the airline's long haul scheme. Qantas will order 12 new Airbus A350s that will fly direct from Australia to major overseas destinations like London and New York.
The flights – the longest operated by any airline in the world – will commence in 2025 out of Sydney.
Commenting on the move, Qantas CEO Alan Joyce said:
New types of aircraft make new things possible. That's what makes today's announcement so significant for the national carrier and for a country like Australia where air travel is crucial…
The Board's decision to approve what is the largest aircraft order in Australian aviation is a clear vote of confidence in the future of the Qantas Group. Our strategy for these aircraft will see us generate significant benefits for those who make it possible – our people, our customers and our shareholders.
Qantas share price snapshot
The Qantas share price has gained 8.8% so far in 2022. That compares to a loss of 2.0% posted by the S&P/ASX 200 Index (ASX: XJO).
