With liquidity of $3.8b, Qantas (ASX:QAN) shares are still exciting these retail investors

Qantas was among the most traded shares for Saxo’s retail investors last month.

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Despite the woes of the last 18 months, the Qantas Airways Limited (ASX: QAN) share price is a winner for this financial institution’s retail investors.

Saxo Capital Markets has listed Qantas as one of its Australian retail investors’ top 10 most traded stocks for the month of August.

Interestingly, the enthusiasm for Qantas’ shares continued past the release of its financial year 2021 earnings, in which it posted a statutory loss of $2.35 billion.

Let’s take a closer look at what got Saxo’s retail investors excited about Australia’s largest airline.

Qantas one of August’s top retail shares

The Qantas share price gained 10.8% over the course of August. At the same time, it was one of Saxo’s Australian retail investors’ most traded stocks.

According to Saxo, it was the airline’s massive liquidity that caught the eyes of its clients.

Within its FY21 results, Qantas noted it had liquidity totalling $3.8 billion. The airline’s liquidity was made of $2.2 billion of cash and $1.6 billion worth of undrawn debt facilities.

Additionally, 95% of its domestic operations were still bringing in coin despite a seemingly continuous wave of border closures.

The Qantas share price took off 3.5% after the airline released its FY21 earnings.

The financial institution also made a note of Qantas’ plans to continue delivering cost saving measures over FY22.

Additionally, while Saxo didn’t mention Qantas’ debt reduction strategy, it’s also well underway.

The Motley Fool Australia recently reported that Qantas has received interest from 18 potential buyers of its land in Sydney. Qantas expects the sale to see hundreds of millions of dollars wiped from its borrowings.

However, Saxo warns that, while Qantas has managed to survive the pandemic so far, its future is still uncertain.

Qantas has predicted its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first half of FY22 will include a $1.4 billion impact from the current COVID-19 outbreaks in Australia.

Should you invest $1,000 in Qantas Airways right now?

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

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