Insights

Qantas (ASX:QAN) share price climbs as overseas travel ban lifts

Qantas shares are taking off as the overseas travel ban lifts.
The post Qantas (ASX:QAN) share price climbs as overseas travel ban lifts appeared first on The Motley Fool Australia. –

The Qantas Airways Limited (ASX: QAN) share price rose to $5.60 in morning trading as the federal government confirmed the latest change to international travel.

According to reporting by various media, including Seven West Media Ltd (ASX: SWM), Australian citizens will be able to travel overseas again on 1 November 2021.

However, this only relates to Australians who are doubled vaccinated, according to Prime Minister Scott Morrison. Whilst anyone can leave Australia without an exemption, at this stage only citizens, permanent residents and their immediate families can enter the country.

Seven reported that it was Australia’s high level of vaccination that gave the federal government the confidence to allow overseas travel again. Just over 87% of Australians over 16 have had their first dose.

Mr Morrison said:

Today I can tell you that Australia’s first dose vaccination rate is now higher than the United Kingdom, so well done Australia!

COVID-19 continues to affect global travel rules. A large amount of countries will need prospective travellers to be fully vaccinated and return a negative COVID-19 ‘pre-departure’ test before being allowed in.

How is Qantas looking to capitalise on this?

The airline has been busy making plans to get tickets available for purchase and preparing for various routes.

Last week, Qantas outlined how the Jetstar and Qantas businesses were gearing up for the accelerated border reopening.

It said that all Australian-based Qantas and Jetstar employees will be able to return to work in early December 2021. The company wasn’t expecting this to happen until June 2022.

Flights from Sydney to Singapore, Bangkok, Phuket, Johannesburg and Fiji are resuming ahead of schedule.

Qantas is planning to launch a new route from Sydney to Delhi on 6 December 2021 with three return flights per week with its A330 aircraft, building to daily flights by the end of the year. This is subject to discussions with Indian authorities.

The airline also plans to bring back two of its Airbus A380 aircraft earlier than planned and is in discussions with Boeing about accelerating the delivery of the three brand new 787 Dreamliners, which have been in storage for most of the pandemic.

The Qantas share price could also be taking into account the domestic update.

The airline business is preparing to ramp up capacity between Melbourne and Sydney as quarantine-free travel is set to resume between Australia’s two largest cities. Before COVID, The Sydney-Melbourne route was the second busiest route in the world. By Christmas, it’s expecting to operate up to 37 return flights per day.

CEO comments

The Qantas CEO Alan Joyce has recently said:

In recent weeks, sales on international flights to and from Sydney have outstripped sales on domestic flights, which shows how important certainty is to people when making travel plans.

While these flights will initially be for Australians and their families, we expect tourists from Singapore, South Africa and India to take advantage of these flights once borders reopen to international visits, which is great news for the industry.

Qantas also hopes that as vaccination rates increase in other states and territories, it will be able to restart international flights out of capital cities.

Broker rating on the Qantas share price

Ord Minnett is one of the most positive brokers on Qantas at the moment, with a price target of $6.50. It’s attracted to the ideas of it being a COVID recovery idea as well as benefiting from the recently-announced sale of land.

Based on the estimated earnings, Ord Minnett thinks Qantas shares are valued at under 10x FY23’s potential profit.

The post Qantas (ASX:QAN) share price climbs as overseas travel ban lifts 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 nearly 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 August 16th 2021

More reading

I’m buying these 2 cheap ASX shares right now: expert

Qantas (ASX:QAN) share price soars to 52-week high on international travel update

ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher

Qantas (ASX:QAN) share price on watch after ramping up international travel plans

Qantas (ASX:QAN) share price on watch as New Zealand travel returns

Motley Fool contributor Tristan Harrison 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 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.

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 App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!