The Qantas Airways Limited (ASX: QAN) share price currently sits around $5.37 per share, its highest level in more than nine years.
The airline’s share price has bounced from a low of $2.58 around 12 months ago for a number of reasons. The shares are up 79% since June 2016.
Lower oil prices, rising passenger numbers, cost-cutting and improved profitability, stable and rational competition from the likes of Virgin Australia Holdings Ltd (ASX: VAH) and rising airfares have all helped the shares hit record prices recently.
Broker Citi recently reiterated its buy rating on the airline, increasing their price target to a whopping $7.09. Citi believes that the airline’s share price is undergoing a rerating that is long overdue.
It’s not the only airline seeing improved performance though. Regional Express Holdings Ltd (ASX: REX) and Air New Zealand (ASX: AIZ) both have upgraded their guidance for their full year 2017 (FY2017) results.
Qantas expects to report an underlying profit before tax for FY2017 of more than $1.35 billion, which continues the turnaround under CEO Alan Joyce over the past few years.
The results suggest that airlines may have shed their poor reputation for losing shareholders funds, but investors still need to be wary given the external factors that can influence the performance of airlines.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Why PWR Holdings Ltd could see its share price rise from here – July 21, 2017 12:11pm
- Fortescue Metals Group Limited share price sinks on native title decision – July 20, 2017 4:23pm
- 5 overlooked finance shares to add to your watchlist – July 20, 2017 2:33pm