Qantas share price dips despite performance lift

Qantas' shares are falling on Monday…

| More on:
a passenger plane is on the tarmac with passenger shute attached with a view of the surrounding land and sunset in the 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

The Qantas Airways Limited (ASX: QAN) share price is having an underwhelming start to the week.

In afternoon trade, the airline operator's shares are down 1% to $5.25.

What's going on with the Qantas share price?

Investors appears to have been selling down the Qantas share price on Monday due to weakness in the US airline industry on Friday night amid recession concerns.

The likes of American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines all dropped deep into the red on Wall Street at the end of last week.

It is worth noting that it isn't just Qantas that is falling today. The Air New Zealand Limited (ASX: AIZ) share price is down 2% at the time of writing.

Unfortunately, this industry weakness has offset the release of a positive update by Qantas this morning.

What did Qantas announce?

According to the release, Qantas' operational performance has continued to improve towards pre-COVID levels, with flight delays, cancellations, and mishandled bag rates all falling in the first two weeks of September.

The release reveals that the company's on time performance has improved from 52% of flights on time in July, to 67% in August, and now 71% between 1-14 September.

Another positive is that flight cancellations have reduced to just 2% during the month so far. This is down from 7.5% in June, 6.2% in July, and 4% in August. Importantly, the current figure is below pre-COVID levels.

Finally, mishandled bags are at 6 per 1000 passengers overall and at 5 per 1000 for domestic flights, which is at pre-COVID levels. That's despite there being an increase in the average number of bags checked in per passenger compared to pre-COVID, reflecting the strong rebound in leisure travel.

However, Qantas acknowledges that with school holidays, long weekends, and football finals coming up, its performance will be tested by high levels of demand at peak times.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Travel Shares

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

Virgin Australia vs Qantas shares: Which is the best buy?

Competition in Australia's aviation market is heating up.

Read more »

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

Why this expert is calling time on Virgin Australia shares

A leading expert is calling time on Virgin Australia shares. But why?

Read more »

Couple at an airport waiting for their flight.
Travel Shares

Macquarie increases price target for Qantas shares

Qantas shares hit a new all-time high today.

Read more »

Happy woman trying to close suitcase.
Travel Shares

Guess which ASX travel stock Macquarie just named as its top pick with 32% upside?

While Macquarie sees value across the sector, it named a clear favourite. 

Read more »

A man in a dark blue suit walks through an airport past floor-to-ceiling windows with a Qantas plane flying in the distance
Travel Shares

Up 16% this year, does Macquarie rate Corporate Travel Management shares a buy, hold or sell?

Does the travel stock have further to fly?

Read more »

A group of young people lean over the rails overlooking Sydney's Circular Quay and check out the sights of the city around them.
Travel Shares

Can these two battered ASX travel shares bounce back?

Ahead of important tourism data this week, these two travel companies could be buy low candidates. 

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Did Flight Centre, Air New Zealand, or Qantas shares fly highest in FY25?

How did these ASX travel shares perform last financial year?

Read more »

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

The Virgin Australia share price just slipped back below IPO levels. Should I buy shares today?

A leading expert offers his forecast on the struggling Virgin Australia share price.

Read more »