Here’s what drove the Qantas (ASX:QAN) share price in May

It’s been a big month for Australia’s largest airline, which has faced new lockdowns, delayed international border

| More on:
woman in mask placing bag on airplane indicating travel

Image Source: Getty Images

May was hectic for Qantas Airways Limited (ASX: QAN) and its share price, which fell 5% over the course of the month. At the time of writing, shares in Qantas are trading for $4.70, down 0.32%.

Last month, the airline was affected by renewed lockdowns in Victoria, delays to the opening of Australia’s borders, and an Australian Competition & Consumer Commission (ACCC) ruling.

 Let’s take a closer look at the month that’s been for the Qantas share price on the ASX.

International woes

Early in the month, Qantas faced 2 setbacks regarding its plans to restart international flights.

The first was the ACCC’s plan to deny the airline’s proposal to partner with Japan Airlines.

The 2 airlines wanted to coordinate their flights between Australia and Japan under a 5-year joint business arrangement.

The ACCC’s Chair, Rod Sims, said the airlines were already each other’s strongest competition on the route. By working together, the space could be conglomerated to the detriment of travellers.

The second downfall for Qantas’ international travel plans came via the Federal Budget.

Previously, Australia’s borders were expected to open in October. The Budget, and the slow vaccine rollout, pushed that date back to the middle of 2022.

Domestic news

Despite the delayed resumption of Qantas’ international services weighing on the airline’s share price last month, it had a number of wins at home.

First, Qantas announced increased domestic travel and its cost-reduction measures are likely to boost the airline’s revenue into the green shortly. Though, Qantas specified its hopes rested on Australia experiencing no further lockdowns.  

Of course, Qantas was hit when Victoria went into a 7-day lockdown on Friday.

Many Victorian residents were banned from travelling interstate last Wednesday.

Finally, after flagging that Qantas could be offering incentives to get vaccinated, the airline’s CEO Alan Joyce told Today that vaccinated Australians could win free holidays, starting in July. Joyce said:

We are looking at giving 1000 points flight vouchers, credits and we are going to offer ten mega prizes, at least one for each state and territory, where a family of four get unlimited travel on the Qantas and Jetstar network, anywhere in the network for a year…

I’m encouraging a ‘Team Australia’ moment where every corporate out there helps with this vaccine rollout and to reward people that have had the vaccine.

The airline will work with hotel group Accor to supply its winning families with accommodation.

Qantas share price snapshot

So far, 2021 hasn’t been a good year on the ASX for the Qantas share price.

The Qantas share price has fallen 4.68% year to date. Though, its gained 16.71% since this time last year.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Travel Shares