Key Points
- Qantas shares on watch following a late Friday afternoon announcement
- Domestic capacity slashed by 10%
- International route via Perth on hold
The Qantas Airways Limited (ASX: QAN) share price will be in the spotlight today.
The company released a statement to the ASX after market close on Friday regarding the Western Australian border delay.
At the end of last week, the airline operator's shares closed at $4.89, down 2.98%. This fall came from the heavy sell-off on the S&P/ASX 200 Index (ASX: XJO), which lost 2.27% on Friday.
Qantas provides update on domestic capacity
Following the Western Australian government's decision to delay the reopening of its borders, Qantas has had to review its domestic capacity settings.
Consequently, management advised that it will cut its planned domestic capacity by roughly 10% from 5 February to 31 March. Although, this is subject to change depending on how the pandemic plays out across Australia.
Qantas stated that whilst it operates at a reduced capacity, core connections between Perth and other capital cities will remain. This will see up to 15 flights per week from Sydney, Melbourne, Brisbane, Adelaide and Darwin supporting essential personnel and freight.
Factoring in the latest changes, total group domestic capacity stands around 60% of pre-COVID levels for the third-quarter of FY22.
Qantas affirmed it will provide a further update on its domestic capacity settings at its half-year results on 24 February.
On the international scale, the Perth to London route had been scheduled to recommence sometime in late March this year. However, the route is currently under review, with the Darwin to London service continuing to fill in the gap.
Investors will likely be bracing for some turbulence in the Qantas share price when the market opens up. It's worth noting that the Dow Jones Industrials (DJINDICES: ^DJI) slumped 1.30% to 34,265.37 points on Friday night.
Furthermore, the S&P/ASX 200 Futures is down 2.31% to 7,013 points.
Qantas share price snapshot
Since the start of 2022, Qantas shares have moved relatively sideways, posting a loss of more than 2%. However, when looking at a larger time frame such as the last 12 months, its shares are relatively flat.
Qantas commands a market capitalisation of roughly $9.22 billion, making it the 65th largest company on the ASX.
