The Qantas Airways Limited (ASX: QAN) share price is lifting off today.
Qantas shares closed yesterday trading for $4.24 and are currently trading for $4.42, up 4.1% at the lunch hour.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has dipped back into the red, down 0.1%.
So, why is the Qantas share price outperforming?
Vaccine mandates and crude prices
The flying kangaroo looks to be getting a boost on two fronts.
First, the Qantas share price has faced some headwinds in recent months as crude oil prices topped US$120 per barrel. That's seen the costs of jet fuel – one of the biggest costs airlines incur – soaring.
But crude oil has been retracing amid speculations of a pending global economic slowdown driven by new potential COVID lockdowns in China and a recession fear in the United States. Brent crude fell again overnight and is currently trading for US$99.06 per barrel, down from US$122.27 just one month ago.
Also potentially lifting the Qantas share price today is news that the airline will scrap its COVID-19 vaccine requirements for international travellers commencing next week.
According to the internal note it sent to staff (courtesy of The Australian Financial Review):
From Tuesday 19 July 2022 we will no longer require passengers on international flights operated by the Qantas Group to be fully vaccinated with a COVID-19 vaccine.
This change follows consultation with WHS [Work Health and Safety] representatives across the group. It is also in line with the Federal Government's announcement that international visitors are no longer required to be fully vaccinated against COVID-19.
The Federal Government removed the requirement for international travellers to be vaccinated last week, based on advice from the country's chief medical officer.
Qantas share price snapshot
Today's boost trims the Qantas share price losses for 2022 to 14%, slightly underperforming the 13% year-to-date loss posted by the ASX 200.
