Qantas (ASX:QAN) share price falls as capacity drops below 40%

A resurgence of COVID-19 cases, the delta variant and continued lockdowns. Things aren’t looking great for Qantas shares.
The post Qantas (ASX:QAN) share price falls as capacity drops below 40% appeared first on The Motley Fool Australia. –

The Qantas Airways Limited (ASX: QAN) share price is back to November 2020 levels in wake of rising COVID-19 cases and ongoing lockdown measures.

At the time of writing, the Qantas share price has edged 1.40% lower to $4.58.

Yesterday, ABC revealed that Qantas chief executive Alan Joyce has “warned staff to brace for the potential of renewed stand downs, as closed borders and lockdowns smash domestic travel.”

Why the Qantas share price is under pressure

ABC reported an email to Qantas staff saying:

… the airline said it was running around 90 per cent of pre-COVID capacity before Sydney’s lockdown took that to around 60 per cent.

Now, adding in the Victorian and South Australian lockdowns,the Qantas boss said the airline had reduced domestic capacity to less than 40 per cent of what it was pre-COVID.

Mr Joyce said he was hopeful that lockdowns would end soon, allowing the airline to get back up to 60 per cent of pre-COVID domestic capacity by August and 80 to 90 per cent by spring.

The commentary from ABC is in stark contrast to Qantas’ most recent market update on 20 May.

The upbeat update said that the company was on track to reach 95% of its pre-COVID domestic capacity in the fourth quarter of FY21. The outlook was even more positive for the new financial year.

“Qantas and Jetstar expect to average 107 and 120 per cent respectively of their pre-COVID domestic capacity in FY22.”

In addition, to meet both present and future demand, Qantas advised that it brought all domestic aircraft back into service.

Foolish Takeaway

The ABC report looks like an effective 180 to Qantas’ positive market update.

With major states including Victoria, Sydney and South Australia in lockdowns until the last week of July and increasing concerns about the delta variant, the Qantas share price might have to buckle up for increased volatility in the near term.

The post Qantas (ASX:QAN) share price falls as capacity drops below 40% 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 May 24th 2021

More reading

Qantas (ASX:QAN) share price on watch as CEO warns lockdowns could cost jobs
Qantas (ASX:QAN) share price tanks another 2% on Tuesday
Why BHP, HUB24, Qantas, & Santos shares are dropping today

What happened on the US stock market overnight and how could it impact ASX shares?

Top broker still thinks the Qantas (ASX:QAN) share price is great value

Motley Fool contributor Kerry Sun 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!