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Is the Qantas Airways Limited (ASX:QAN) share price headed back to health?

Qantas
Credit: Joits

The Qantas Airways Limited (ASX: QAN) share price began a series of declines in mid-August but appears to be starting to recover.

Qantas announced today it was again in the position to qualify for inclusion in the MSCI Index as foreign persons potentially held 40.8% of its issued share capital.

State of play

The Qantas share price is at $5.67 at the time of writing, edging closer to its share price point at this time last year of $6.03.

The Qantas share price saw some solid gains in August, hitting a 52-week high on August 21 – closing off the days trade at $6.83 – but declines ever since have had shareholders nervous.

The declines began after the release of the Qantas annual report, where Qantas flagged a fuel bill increase of $860 million for FY19 which could really knock the airline’s margins.

While Qantas can hope for lower oil prices to reduce fuel cost pressures, price competition among airlines is always waiting in the wings to pack a punch.

In the peripheral

Other shares climbing back from share price dips include Lynas Corporation Ltd (ASX: LYC) with the Lynas share price up 3.7% to $2.19 today and the AMP Limited (ASX: AMP) share price is also showing signs of recovery, at $2.62 from an October 52-week low of $2.31.

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Returns as of 6th October 2020

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. 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 Scott Phillips.

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