Shares in airline behemoth Qantas Airways Limited (ASX: QAN) fell 5.7% across the month of June, finishing the month at $3.78 after the share price reached highs of $5 during the month. It was a disappointing finish, which saw the company give up almost 24% from the month's highs.
Since the end of June, the Qantas share price has continued its downward trend to sit at $3.64 at the time of writing. Over the past year, Qantas shares are down just over 37%, with the S&P/ASX 200 Index (ASX: XJO) only losing around 10% in comparison.
What moved the Qantas share price in June?
The Qantas share price downturn has been well documented, with the travel industry cratering during COVID-19 as people are forced to stay at home. Qantas' 2020 share price performance (to date) shows a sharp decline on the impressive 26% and 16% increases that the airline posted in 2019 and 2018, respectively.
In June, a mixture of positive and negative news put pressure on the Qantas share price. Notably, on 25 June Qantas announced a post-COVID-19 recovery plan and plans to raise $2 billion to accelerate recovery and position itself for opportunities.
In the announcement, Qantas also confirmed it would be grounding 100 aircraft for up to 12 months and that it had reduced costs by $15 billion over the next 3-year period of lower activity. It also revealed there would be $1 billion in ongoing cost savings per annum from FY23. The airline also announced plans to further cut its workforce by 6,000 along with the continuation of stand downs for 15,000 other employees.
The next day, Qantas confirmed it had completed its $1,360 million institutional placement with strong support from investors, with the roughly 370 million new shares being issued at $3.65 per share.
Commenting on the share placement, Qantas CEO Alan Joyce stated: "That there was significant demand for this offer shows clear support for our recovery plan and confidence in the fundamentals of this business."
What's next for the Qantas share price?
With the Qantas share price continuing to drop over the first few days of July to be wavering around the $3.60 per share mark, the airline will be hoping to turn things around. However, news that Victoria is now entering a 6-week lockdown as Australia tries to avoid a 'second wave' of the coronavirus pandemic will no doubt hamper any recovery for Qantas shares.
In better news, Qantas recently partnered with Afterpay in a new partnership that will allow Qantas flyers to earn Qantas points on Afterpay's buy now, pay later platform.
