The Qantas Airways Limited (ASX: QAN) share price suffered some turbulence today. It managed to finish 0.2% higher, however, at one point it was down around 1.4%. But, it recovered during the afternoon.
To put that in context, the S&P/ASX 200 Index (ASX: XJO) ended the day down 0.1%.
Looking at some of the other air-related ASX shares, the Air New Zealand Limited (ASX: AIZ) share price rose by 0.7% and the Auckland International Airport Limited (ASX: AIA) share price climbed 0.6%.
I think it's also interesting to note what happened with the oil and gas ASX shares because a higher oil price is a good thing for the oil businesses but not so good for the airlines, and vice versa when the oil price goes lower. Today, the Woodside Energy Group Ltd (ASX: WDS) share price fell 1.4% and the Santos Ltd (ASX: STO) share price declined 0.3%.
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Trouble ahead for the Qantas share price?
According to reporting by The Australian, the ASX travel share warned that existing "marginal" flight routes and services may be shut down if the current proposed industrial relations reform is passed. It was reported that Qantas claimed the change would "destroy demand" for flying because of higher costs.
In a submission to the Senate inquiry, Qantas said it would plunge the aviation sector back 40 years, which would mean a "cascade" of job losses and less flying. The airline said:
The Bill places at risk a vigorously competitive, efficient and innovative Australian aviation industry.
For the Qantas Group, it will almost certainly mean less flying because costs will rise and demand will be destroyed – particularly on marginal routes. This will result in less investment and fewer jobs in aviation, with a flow on effect for communities and tourism.
This is not catastrophising because we have seen a version of this before under Australia's centralised wage-fixing model in the 1970s.
The airline suggested that multi-employer bargaining would essentially become industry-wide agreements that would "undermine the viability of many enterprises" according to reporting by The Australian.
Recent movements
Over the past month, the Qantas share price is flat. However, since the start of the year, the airline has seen a rise of 13%.
