The Qantas Airways Limited (ASX: QAN) share price was one of the worst performers on the S&P/ASX 200 Index (ASX: XJO) last month.
During March the airline operator's shares fell a massive 41.5%. This was almost double the 21.2% decline recorded by the benchmark ASX 200 index.
Why did the Qantas share price crash lower in March?
Qantas and fellow airlines Air New Zealand Limited (ASX: AIZ) and Virgin Australia Holdings Ltd (ASX: VAH) were hammered last month after government's around the world closed their borders to stop the spread of the coronavirus.
Throughout the month Qantas cut its capacity lower and lower, before ultimately grounding all its international fleet.
The company also cut its domestic capacity materially in response to a collapse in demand. This was achieved through a significant reduction in flight frequency, but also route suspensions and postponing a number of new route launches.
This ultimately led to the airline standing down the majority of its 30,000 employees until at least the end of May 2020 and deferring its dividend payment until September.
Is this a buying opportunity?
Whilst I believe it would be prudent to hold off investing until the coronavirus crisis passes and travel and tourism markets return to normal, some brokers believe this share price weakness is a buying opportunity.
According to a note out of Morgan Stanley last week, its analysts have an overweight rating and $5.60 price target on the company's shares. This price target implies potential upside of over 70% from its last close price.
Another broker that is positive on the airline is Citi. A couple of weeks ago the broker upgraded its shares to a buy rating with a $3.70 price target.
It expects a U-shaped recovery to take place, with demand and trading conditions bouncing back in FY 2021. Though, the broker does class its shares as a high risk option given the increased uncertainty.
