Qantas share price soars to new all-time high today

The airline is in full flight so far in 2025.

| More on:
A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges

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 Ltd (ASX: QAN) share price hit an all-time high on Wednesday.

The stock opened trading at $9.20 apiece before reaching the new record high of $9.44 per share early in the session.

Shares in the airline retreated from that level slightly and closed the day at $9.36 apiece. But this brings gains for the past 12 months to more than 74%. Let's see what brought us here.

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

What's driving the Qantas share price?

The Qantas share price has rallied in recent months, fueled by several catalysts. So, while the company's performance today is not price-sensitive, the gains are likely an extension of the broader uptrend in prices.

But brokers are bullish on the airline stock, and there are plenty of reasons why.

As I've pointed out previously, Goldman Sachs is bullish and calls Qantas the "flagship carrier of Australia". It expects Qantas' passenger capacity to be ahead of pre-COVID levels by FY25.

Morgan Stanley also rates the Qantas share price a buy, with a price target of $10.50. As my colleague James reported, the broker cites a recovery in demand as well, but adds lower fuel costs as a key driver of Qantas' profitability.

In addition, Morgan Stanley predicts Qantas could announce more share buybacks this year, which may explain some of the bullish sentiment.

Meanwhile, the consensus of analysts estimates rates it a buy as well, according to CommSec.

And it seems like Qantas is positioned to benefit from the ongoing recovery in travel demand.

And with an 11.6% year over year increase in total departures from Australia in November, according to the Australian Bureau of Statistics (ABS), this could be the trend.

Arrivals were also up nearly 7% year over year to 1.66 million. It's impossible to say how many of those flying into/out of Australia flew with Qantas, but it does show positive trends.

Frequent flyer changes

Qantas also runs one of the most extensive loyalty programs, which features its 'frequent flyer' program. This uses Qantas Flight Rewards and Qantas Points as a points accumulation system.

These points are accrued based on miles flown, with a varying scale based on what kind of ticket you pay.

But the airline is set to make sweeping changes to the program this year. As reported by The Australian, the company will increase the number of points earned when flying with Qantas.

That said, the number of points needed to redeem seat options when flying is also set to increase.

The reporting provides the example of a Classic Reward business class seat from Sydney to Melbourne. This would have previously required 18,400 points plus charges of $55.

It would now be 19,300 points plus $76. First-class from Sydney to London would jump to 166,300 points (from 144,600) plus charges of $648 (from $473).

Qantas noted that 13,000 Classic Reward seats were booked daily, indicating that "travel remains the number one priority" for its loyalty members.

It will offer more selections on its low-fare carrier option, Jetstar, to offset the hike in points needed to redeem seats.

This information isn't price-sensitive in any way, so it will unlikely impact the Qantas share price.

Foolish takeout

The Qantas share price has hit a milestone high and extended gains in January. Plus, experts reckon the company is well-positioned to continue this growth in 2025.

If travel trends maintain their current level of growth, this could be prove true.

In the past month, Qantas stock is up nearly 8%.

Motley Fool contributor Zach Bristow 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 looking through a window and working on a laptop.
Travel Shares

What does Macquarie think Web Travel Group shares are worth?

Is the broker bullish or bearish? Let's find out.

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Web Travel share price rockets 13% on market leading full-year growth

Investors are sending Web Travel shares soaring today. Here’s why.

Read more »

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

$10,000 invested in Qantas shares 5 years ago is now worth

Let's see what happened if you were brave and bought the Flying Kangaroo's shares in 2020.

Read more »

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

Why have Qantas shares outperformed Flight Centre shares by more than 100% over the past 12 months?

The two share prices are travelling in opposite directions.

Read more »

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

Qantas share price slips amid looming $121 million fine

Qantas continues to face legal issues stemming from the Covid pandemic years.

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a young woman looks at here phone as she strides out in an airport dragging her wheelie bag behind her and smiling widely.
Travel Shares

Would I buy Qantas shares right now?

This ASX travel share has flown higher. Is it a buy?

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which ASX All Ords stock just received a takeover offer

A private equity firm has its eyes on this stock.

Read more »