The Qantas (ASX:QAN) share price is down 4% this last week. Here’s why

Qantas has experienced some major turbulence this week.
The post The Qantas (ASX:QAN) share price is down 4% this last week. Here’s why appeared first on The Motley Fool Australia. –

The last 7 days have been busy for the Qantas Airways Limited (ASX: QAN) share price.

The airline has been plagued with news of land sales, digital health passes, a federal court loss, and its decision to stand down 2,500 crew.

Simultaneously, outbreaks of COVID-19‘s delta strain in Southeast Queensland, and the ongoing outbreak in Sydney, have seen some potential travellers stuck at home while lockdowns were lifted in Victoria and South Australia.  

The Qantas share price fell another 0.44% yesterday to finish the day trading for $4.50. That’s 4.05% lower than it was this time last week.

Let’s take a closer look at Qantas’ wild week.

The week that’s been for Qantas

The first reports that shocked the Qantas share price came last Thursday morning.

Then, The Australian reported Qantas is looking to sell almost 14 hectares of land in Sydney’s inner suburb of Mascot.

Qantas is reportedly expecting to gain $500 million from the land’s sale. The funds would go towards paying off some of the company’s debt.

Later that day, Qantas announced it has partnered with the International Air Transport Association to implement a digital health pass.

The pass would conglomerate a traveller’s vaccination status and COVID-19 test results, before determining whether their COVID-19 status matches the border requirements of their destination.

The pass would be required by all Australians travelling on Qantas’ and Jetstar’s international flights when overseas travel restarts.

The Qantas share price fell 0.43% on Thursday.

On Friday, the Qantas share price was hit again when news broke that the airline had lost its federal court battle against the Transport Workers’ Union.

The court found that Qantas’ decision to outsource more than 2,000 jobs was a direct result of its former employees’ union memberships. The decision, therefore, violated the Fair Work Act.

Qantas said it will appeal against the decision.

The Qantas share price fell 0.65% on the back of the news.

Finally, on Tuesday Qantas made the decision to stand down 2,500 frontline Qantas and Jetstar employees.

Qantas’ CEO Alan Joyce said the staff will likely stay home for the next 2 months, during which he believes Sydney’s COVID-19 outbreak will continue to spread.

Joyce’s prediction was echoed by New South Wales Premier Gladys Berejiklian yesterday. Berejiklian told a press conference that Sydney’s outbreak likely hasn’t peaked.

The stood down crew will be paid until mid-August. None will lose their jobs as a result.

Qantas shares dropped 1.5% over the course of Tuesday.

Qantas share price snapshot

While the Qantas share price hasn’t been tracking well this year, it’s slightly recovered from the height of the pandemic.

Qantas shares are swapping hands for 8% less than they were at the start of 2021. However, they’ve gained 38% since this time last year.

The post The Qantas (ASX:QAN) share price is down 4% this last week. Here’s why appeared first on The Motley Fool Australia.

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Qantas (ASX:QAN) share price drops after federal court loss

Motley Fool contributor Brooke Cooper 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.

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