Why the Qantas (ASX:QAN) share price is rallying 3% on Thursday

Things are looking up for the travel industry…
The post Why the Qantas (ASX:QAN) share price is rallying 3% on Thursday appeared first on The Motley Fool Australia. –

The Qantas Airways Limited (ASX: QAN) share price is looking bullish in September, up 11% to 10-month highs of $5.68. At the time of writing, it is up 3.66% on the day to $5.67.

This follows an optimistic FY21 full-year results announcement and news the United States might reopen its international borders as soon as November.

Good news for travellers

The United States will reopen its borders in November to fully vaccinated travellers from 33 countries, the White House reported on Monday.

According to Reuters, this marks a sudden shift from the Biden administration which last week said that “it was not the right time to lift any restrictions amid rising COVID-19 cases”.

The United States will welcome air travellers from 26 European countries, as well as the UK, Ireland, China, India, South Africa, Iran, and Brazil.

The news has sparked a jump for both the Qantas share price and the broader ASX-listed travel sector this week.

ASX-travel shares rejoice

ASX-travel shares have bounced higher this week even after a sharp selloff for the broader S&P/ASX 200 Index (ASX: XJO) on Monday.

Airlines including Qantas, Air New Zealand Limited (ASX: AIZ) and Regional Express Holdings Ltd (ASX: REX) are up a respective 2.3%, 2.3% and 3.7% this week.

Travel management companies like Corporate Travel Management Ltd (ASX: CTD) and Webjet Limited (ASX: WEB) have rebounded strongly after Monday’s correction, up 9.1% and 3.3% respectively.

Qantas expects international travel to pick up in 1H21

Qantas’ FY21 full-year results expected international flying in 1H22 to be at approximately 15 per cent of pre-COVID levels.

The company said once Australia’s borders begin to reopen, the group’s international capacity is expected to pick up by 30 to 40 per cent by Q3 and 50 to 70 per cent by Q4, compared to pre-COVID levels.

Qantas share price tests 10-month high

The Qantas share price has been had highs of $5.80 and lows of $4 since November last year.

Qantas is trading towards the upper level, currently fetching $5.67.

The post Why the Qantas (ASX:QAN) share price is rallying 3% on Thursday appeared first on The Motley Fool Australia.

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More reading

How has the Qantas (ASX:QAN) share price performed since reporting results?
Qantas (ASX: QAN) share price higher as US plans to open air travel
Qantas (ASX:QAN) share price gains amid $20 flights resting on domestic reopening
How have these 3 ASX 200 travel shares performed since reporting results?

Is it too late to buy Qantas (ASX:QAN) and other ASX travel shares?

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 owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. 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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