Why is the Qantas share price flying 7% higher today?

There’s good news for the airline industry.

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A woman stands on a runway with her arms outstretched in excitement as a plane takes off behind her representing the rising Qantas share price today

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Key points

  • Qantas shares are lifting amid reports travel demand has started to rebound sharply
  • In its earnings report released overnight, US carrier Delta Airlines made some bullish travel projections
  • In the past month, the Qantas share price has grown by 11% 

Qantas Airways Limited (ASX: QAN) shares are tracking higher today, up 7.37% to $5.47 apiece.

Qantas shares may be rising after US airline carrier Delta Air Lines Inc (NYSE: DAL) spurred a rally of US airline stocks overnight.

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What’s driving the Qantas share price higher?

Delta has made some bold and bullish projections about a rebound in summer travel. This sent airline share prices in the US higher overnight and Qantas appears to be following in their footsteps.

Bloomberg reported: “The carrier said strong summer bookings will help it offset fuel costs and a slow return of business travel.”

From its earnings report yesterday, Delta remarked:

Domestic consumer revenues are exceeding 2019 levels and the recovery in business travel, revenue has accelerated as offices reopen and business travellers rebuild face-to-face relationships.

Demand for long-haul international is growing, as travel restrictions lift, led by the Transatlantic. To date, we have not seen an impact to travel demand from the conflict in Ukraine, but we, of course, are monitoring this closely. Nearly all European countries have now removed entry testing requirements for vaccinated customers.

We continue to join the rest of the US travel industry, in urging the US government to lift pre-departure testing requirements.

What else is happening with Qantas?

Earlier in the week, Qantas faced allegations from consumer advocacy group Choice relating to its flight credit policies.

In the past 12 months, the Qantas share price has grown by just 5%. However, it has spiked 11% in the past month.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Delta Air Lines. 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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