Qantas share price falls along with airline's reputation

Qantas shares are falling out of the sky today.

| More on:
a couple at an airline ticket counter have an angry exchange with the employee behind the counter. She is leaning forward in an aggressive manner as they hold a paper ticket in their hands.

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 S&P/ASX 200 Index (ASX: XJO) is having a pretty poor showing this Wednesday so far. At present, the ASX 200 is down by 0.28%. If the index closes in the red, it will snap a winning streak that has been going on for more than a trading week now. But let's talk about the Qantas Airways Limited (ASX: QAN) share price. 

ASX 200 travel share Qantas is having an even worse day than the ASX 200. At present, the national carrier has lost a meaty 1.37% and is down to $6.49 a share. That's a loss more than four times that of the broader market.

So what's going on with the Qantas share price today that has resulted in such a chunky drop in value?

Well, there's been no fresh developments out of the airline itself, apart from some routine ASX paperwork regarding the company's ongoing share buybacks.

But we do have a likely candidate for why investors are shunning Qantas shares today.

Qantas share price stalls as airline drops out of global top ten

The company has just got some bad news regarding its international reputation. Every year, Skytrax runs the World Airline Awards, ranking the world's top airlines "voted for by travellers around the world".

This morning, 2023's world airline awards were made public, and they weren't good news for Qantas.

Here's what voters decided the world's top ten airlines for 2023 were:

  1. Singapore Airlines
  2. Qatar Airways
  3. ANA All Nippon Airways
  4. Emirates
  5. Japan Airlines
  6. Turkish Airlines
  7. Air France
  8. Cathay Pacific Airways
  9. EVA Air
  10. Korean Air

Notice a conspicuous absence?

Qantas was the number five airline for 2022's awards. But for 2023, the Flying Kangaroo got a big demotion, dropping 12 ranks to number 17.

Perhaps the only comfort for Qantas comes from the news that its rivals Virgin Australia and Regional Express Holdings Ltd (ASX: REX) came in at rank 46 and 56 respectively.

All things considered, it was going to be tough for Qantas to retain its top-ten ranking this year. Qantas flyers infamously had to deal with a myriad of issues over 2022, including long delays and poor staffing levels. Two mechanical incidents at the start of this year probably didn't help either.

However, the drop from five to 17 is a big one, and probably took investors by surprise today. Although it's hard to analyse exactly how much impact this move will have on the business going forward, it almost certainly explains the weakness we are seeing with Qantas shares this Wednesday.

Even so, investors can't be too upset, given the Qantas share price remains up a healthy 9.34% in 2023 so far:

Created with Highcharts 11.4.3Qantas Airways PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Should you invest $1,000 in Qantas Airways Limited right now?

Before you buy Qantas Airways Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Qantas Airways Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Sebastian Bowen 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

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

Why did the Qantas share price lose altitude in April?

Qantas shares didn’t join in April’s ASX 200 rebound. But why?

Read more »

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

Corporate Travel shares crash 11% as Trump tariffs bite

Trump’s tariffs are roiling Corporate Travel shares on Friday.

Read more »

A family walks along the tarmac towards a plane representing more people travelling as ASX travel shares recover
Travel Shares

How lower interest rates could send this beaten down ASX All Ords stock flying

A leading expert says this sold-off ASX All Ords stock is ‘well placed for growth’.

Read more »

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

After a guidance downgrade, what does Macquarie think Flight Centre shares are worth?

Is this stock great value after its downgrade?

Read more »

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

Will lower US travel impact Flight Centre shares?

New data reveals an uncertain future for US travel. Here’s how it could impact travel shares. 

Read more »

Couple at an airport waiting for their flight.
Travel Shares

Why is the Flight Centre share price sinking today?

ASX investors are bidding down Flight Centre shares on Monday. But why?

Read more »

A happy family of four on holidays stand on a jetty and cheer.
Travel Shares

Travel to the US is down this year. Will Australia's tourism sector benefit?

2025 could prove to be a good year for Australian hotel operators.

Read more »

Couple at an airport waiting for their flight.
Travel Shares

What are Macquarie's top 3 ASX stock picks in the travel sector?

If you are looking for exposure to the travel sector, then it could be worth listening to what Macquarie Group…

Read more »