Insights

Can the Qantas (ASX:QAN) share price fly higher in 2022?

Qantas shareholders are hoping for clearer skies ahead.
The post Can the Qantas (ASX:QAN) share price fly higher in 2022? appeared first on The Motley Fool Australia. –

Key points

Qantas shares impacted by Omicron COVID-19 outbreak
Domestic and international passengers down from previous estimates
Clearer horizons expected to emerge in company’s half-year results in February

The Qantas Airways Limited (ASX: QAN) share price has failed to take off in 2022 and is down again today.

A surge in cases of the Omicron variant is causing widespread panic in Australia’s travel market. As a result, the Qantas share price has fallen over the past few weeks from $5.15 on 4 January to $4.86 today.

The Qantas share price is down by 3.57% in late afternoon trading on Friday. However, this is likely due to the broader market sell-off on the S&P/ASX 200 Index (ASX: XJO). The benchmark index is down 2.24% to 7,178 points.

What’s the latest with Qantas?

The volatility in the Qantas share price is being driven by uncertainty relating to the recovery of the travel market.

For the better part of 2021, Australia managed to control the spread of COVID-19. This led to Qantas taking advantage of the strong interest in consumers wanting to travel domestically.

However, investor confidence has turned sour following Omicron outbreaks across the country. This has caused Qantas to re-adjust its capacity estimates for the 2022 financial year.

As such, Qantas is forecasting third-quarter domestic capacity at 70% of pre-COVID levels. This is down from the 102% they had expected previously.

In addition, international capacity for the same period will fall from 30% to around 20% of pre-COVID levels. The reduction is being caused by increased travel restrictions in countries like Japan, Thailand and Indonesia.

On a positive note, other markets such as London, Los Angeles, Vancouver, Johannesburg and India are continuing to perform well for the ASX travel giant.

Qantas noted that an assessment of the financial impact of these changes will be given at its half-year results. By then, it expects a clearer picture of swing factors such as actual demand levels, and travel restrictions in overseas countries.

Will Qantas shares make a comeback in 2022?

It’s anyone’s guess whether the Qantas share price or any other ASX travel shares will return to their pre-COVID levels in 2022. However, a number of brokers believe that the Qantas share price is attractively valued today.

Last month, UBS slashed its outlook by 3.1% to $6.20 per share, representing a potential upside of 26%.

Following suit, Citi had a more bearish tone, cutting its price target on Qantas shares by 1.2% to $5.86 apiece.

Similar to UBS’s view, the team at JPMorgan also reduced its valuation by 0.8% to $6.25 this week. Nonetheless, the broker thinks there is still significant value in the airline and that a recovery is inevitable.

Qantas will report its FY22 half-year results on 24 February.

Qantas share price summary

Year to date, the Qantas share price has fallen by 5% amid Australia reporting record COVID-19 cases amongst its population.

Based on valuation grounds, Qantas has a market capitalisation of $9.16 billion, with approximately 1.88 billion shares on issue.

The post Can the Qantas (ASX:QAN) share price fly higher in 2022? appeared first on The Motley Fool Australia.

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

Before you consider Qantas, you’ll want to hear 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 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 are better buys.

*Returns as of January 13th 2022

More reading

ASX travel shares are nosediving today amid border opening delays

Own Qantas (ASX:QAN) shares? Here’s why the airline is fronting up to the Fair Work Commission

What could help the Qantas (ASX:QAN) share price take flight soon?

Why are ASX 200 travel shares down today?

Brokers name 3 ASX shares to buy today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Aaron Teboneras owns Qantas Airways Limited. 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!