Why the Qantas (ASX:QAN) share price has beaten the ASX 200 in the last year

Let’s take a closer look.
The post Why the Qantas (ASX:QAN) share price has beaten the ASX 200 in the last year appeared first on The Motley Fool Australia. –

Despite an outbreak of the Delta variant and nationwide lockdowns, the Qantas Airways Limited (ASX: QAN) share price has flourished in the last year.

In the past 52-weeks, shares in the airliner have soared more than 31%.

By comparison, the broader S&P/ASX200 (ASX: XJO) Index has only climbed 26.5% higher in the same period.

Let’s take a look at why the Qantas share price has beaten the ASX 200.

Qantas share price rallies into reporting season

Much of the gains in the Qantas share price have been realised in the last week.

Since last Monday, shares in the airliner rallied more than 19% as the company approached its reporting date.

In addition, the Qantas share price also received a boost from its incentive scheme to get more Australians vaccinated.

As part of the program, the airliner aims to reward Australian’s who get the COVID-19 vaccine with bonus points, credits and travel vouchers.

The incentive follows the company’s decision to mandate that Qantas employees receive the vaccine by 15 November 2021.

How did Qantas perform in FY21?

Qantas released its full-year results for FY21 late last week.

The airliner’s report was headlined by a statutory loss before tax of $2.35 billion.

Other highlights from Qantas’ full-year results included;

$12 billion revenue impact from the COVID-19 crisis in FY21.
Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) was $410 million. That’s in line with Qantas’ guidance.
$5.93 billion of revenue.
Operating cash flows came to an outflow of $386 million.

The airliners management cited the difficult domestic and international conditions for the dire result.

Qantas noted that in FY21, only 30 days were free of any state domestic border restrictions.

The outlook for Qantas

The Qantas share price has continued its bullish price action heading into this week.

Shares in the airliner have been buoyed by plans to potentially resume international travel by December of 2021.

In line with the National Cabinet’s plan, Qantas expects the resumption of the trans-Tasman travel bubble and other routes in the Asia Pacific.

Leading broker Citi has also painted an optimistic outlook on the Qantas share price.

Analysts recently retained their buy rating and increased their price target on the airliners shares.

Notwithstanding a disappointing FY21, analysts noted that guidance for FY21 implies market share gains.

The broker acknowledged that despite uncertainty around COVID-19, Qantas is well placed to meet pent-up demand.

At the time of writing, the Qantas share price is trading 6% for the year at $5.11.

The post Why the Qantas (ASX:QAN) share price has beaten the ASX 200 in the last year 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

Woolworths (ASX:WOW) share price history: What caused the biggest ups and downs?
The latest ASX shares to be hit by a broker downgrade

ASX 200 midday update: Harvey Norman’s record profit, PointsBet posts large loss

5 things to watch on the ASX 200 on Tuesday

ASX 200 rises, Altium sinks, Fortescue climbs

Motley Fool contributor Nikhil Gangaram 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!