Although the Qantas Airways Limited (ASX: QAN) share price has dropped lower today, the airline operator's shares are still up over 16% since this time last year.
As a comparison, the ASX 200 is down approximately 2% over the same period.
Is it too late to buy Qantas shares?
Whilst I think Qantas shares are no longer the bargain buy they were 12 months ago, I still see a lot of value in them for investors.
Especially given the release of recent data out of the Bureau of Infrastructure, Transport and Regional Economics (BITRE).
Last week it released its domestic airfare data for the month of January, which showed strong airfare rises across most routes and class types.
According to a note out of Goldman Sachs, it found that the cheapest available prices on the top 20 domestic routes were up 2.8% for January.
As these top 20 routes comprise approximately 70% of all domestic passenger flows, this appears to demonstrate that the rationalisation of domestic capacity by Qantas and Virgin Australia Holdings Ltd (ASX: VAH) is having a positive impact on pricing.
Combined with lower fuel prices, Qantas appears well-positioned to deliver another strong result in FY 2019.
Which is why the broker has not only retained its buy rating on Qantas' shares, but has kept it on its conviction list.
Goldman has a $7.64 price target on the airline operator's shares, implying potential upside of over 25% for them over the next 12 months.
Should you invest today?
I think Qantas is a great option for investors looking to gain exposure to the tourism boom along with Sydney Airport Holdings Pty Ltd (ASX: SYD) and Webjet Limited (ASX: WEB). Just as long as oil prices remain close to current levels and don't surge higher due to supply cuts by OPEC in 2019.
