The Qantas Airways Limited (ASX: QAN) share price has edged lower in early trading with investors keeping a keen eye on it this week.
The extra attention comes as multiple buyers line up to swoop on the airline's investment and land portfolio.
Let's take a closer look.
Image source: Getty Images
Demand for land package spurs Qantas share price
Shares in Qantas have been buoyed by compelling interest in its investment and land holdings.
According to a recent article in The Age, listed companies such as Charter Hall Group (ASX: CHC) and Goodman Group (ASX: GMG) are potential suitors.
Stockland Corporation (ASX: SGP) and Mirvac Group (ASX: MGR) have also emerged as strong contenders.
Bidding for Qantas' land portfolio, which is estimated to be worth in excess of $550 million, is expected to close on Friday.
The package includes several properties and covers approximately 14 hectares in Sydney's industrial precinct.
Part of the package includes Qantas' distribution centre, two development sites and a business park development site.
Qantas has owned the land parcels since the 1960s and decided to sell following a wide-ranging property review.
The airline launched an Expression of Interest process in July 2021, with management citing the sale could unlock several hundred million dollars to further assist with debt reduction.
In its first-half report for FY21, Qantas reported net debt levels of $6.05 billion.
How did Qantas perform in FY21?
Qantas released its full-year results for FY21 in late August.
The airline's report was headlined by a statutory loss before tax of $2.35 billion.
Other highlights from Qantas' full-year results included:
- $12 billion revenue impact from the COVID-19 crisis in FY21.
- Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) was $410 million. That's in line with Qantas' guidance.
- $5.93 billion of revenue.
- Operating cash flows came to an outflow of $386 million.
The airliners management cited the difficult domestic and international conditions for the dire result.
Qantas noted that in FY21, only 30 days were free of any state domestic border restrictions.
Snapshot of the Qantas share price
A strong run in the past few weeks has pushed the Qantas share price 11% higher for the year.
Shares in the airliner have been buoyed by plans to potentially resume international travel by December of 2021.
In line with the national cabinet's plan, Qantas is anticipating the resumption of the trans-Tasman travel bubble and other routes in the Asia Pacific.
At the time of writing, the Qantas share price has opened slightly lower for the day. It's down 0.37% to $5.41.
