The Qantas Airways Ltd (ASX: QAN) share price is flying higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed yesterday trading for $6.37 each. At the time of writing, Qantas shares are changing hands for $6.465 apiece, up 1.49%.
This rise comes amid news the super profits Qantas is forecasting for the full 2023 financial year may well continue into 2024 and beyond.
Image source: Getty Images
What's the outlook for the ASX 200 airline's super profits?
A bit less than two months ago, on 23 May, Qantas reported that it expects to deliver a record-high underlying profit before tax of $2.4 billion to $2.5 billion for FY23.
Those super profits, which look to have been helping the Qantas share price outperform the benchmark, come in large part due to rocketing travel demand and elevated airfares.
In May, Qantas was confident its airfares would remain high for years, with demand for air travel outpacing the post-pandemic rebound in supply.
"I've never seen such favourable international conditions," Qantas head of international and domestic Andrew David said at the ASX 200 airline's investor day conference on 30 May.
"We can say that demand will outstrip supply for the immediate future and through to the end of the decade," David added.
But in early June, the Motley Fool reported the airline's super profits could be at risk of eroding, potentially dragging on the Qantas share price.
That came after Qatar Airways petitioned federal transport minister Catherine King to double the volume of international flights allowed on the lucrative Sydney, Melbourne, and Brisbane routes.
Had that request been granted, it would likely have seen ticket prices come down along with the outlook for Qantas' super profits.
But in good news for Qantas shareholders – and not so good news for travellers seeking lower ticket prices – that request has been denied.
"The Australian government is not considering additional bilateral air rights with Qatar," King said (quoted by The Australian Financial Review).
Qantas share price snapshot
The Qantas share price has outpaced the ASX 200 over the past 12 months, gaining 44%. The ASX 200 is up 10% over that same period.
